what-is-the-effect-of-a-small-tax-on-tax-revenue-and-quantity-exchanged

Question

What is the effect of a small tax on tax revenue and quantity exchanged?

Accepted Answer

A small tax results in low tax revenue but a high quantity exchanged.

Answer

A small tax results in high tax revenue and a low quantity exchanged.

Answer

A small tax results in high tax revenue and a high quantity exchanged.

Answer

A small tax results in low tax revenue and a low quantity exchanged.