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Exhibit 2 Price SAT $20 $16 SBT $12 $8 $4 0 2 4 6 8 Quantity (thousands of units) SAT: supply after tax is imposed

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Exhibit 2 Price SAT $20 $16 SBT $12 $8 $4 0 2 4 6 8 Quantity (thousands of units) SAT: supply after tax is imposed SBT: supply before tax is imposed Use Exhibit 2. Which of the following statements is (are) correct? Select one or more: ma. The amount of the tax revenue is ambiguous because the tax incidence is unknown. b. Tax revenue is more than $24,000 ( c. Tax revenue is less than $24,000 O d. The imposition of the tax caused a reduction in the quantity sold by 1,000 units which indicates that tax revenue equals $24,000. e. None of the above

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