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In the market for widgets, the supply curve is the typical upward-sloping straight line, and the demand curve is the typical downward-sloping straight line. the equilibrium quantity in the market for widgets is 200 per month when there is no tax. then a tax of $5 per widget is imposed. as a result, the government is able to raise $800 per month in tax revenue. we can conclude that the equilibrium quantity of widgets has fallen by

Respuesta :

MsTeel

40 Units.

If the government raised $800 at $5/widget, divide 800 by 5 to see the number of units sold

800/5 = 160 units

Previously the amount was 200 units, so 200-160 = 40 units

vijayhalder031

The correct answer is 40 units

What is the Equilibrium quantity?

  • It is the quantity when there is no shortage or surplus of a product in the market.
  • It appears at the equilibrium point when there is neither shortage nor surplus of the specific product happens.

What is Widgets?

  • Widgets are simple, easy-to-use software applications intended for one or more platforms.
  • We can say that  A generic term for any product, especially a manufactured product.  

How to solve this question?

  • The equilibrium quantity in the market for widgets given is 200 per month
  • The tax imposed is $5

Now ,

The government is able to raise $800 per month

The tax imposed is $5

So , the equilibrium quantity of widgets = 800/5

= 160 units per month

Now ,  the equilibrium quantity of widgets has fallen by

200-160 = 40units.

Hence the equilibrium quantity of widgets has fallen by 40 units

Learn more about widgets here

https://brainly.com/question/15402021

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