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To solve this problem, we need to calculate the excise tax revenue generated from a $0.50 tax on each doughnut sold, considering the new equilibrium after the tax.

### Steps to approach:
1. **Identify the initial equilibrium point** (before tax) from the graph, which is where the demand and supply curves intersect.
2. **Shift the supply curve** up by $0.50 because of the excise tax and find the new equilibrium.
3. **Calculate the new equilibrium quantity** and use it to compute the excise tax revenue.

### Analyzing the graph:
- From the graph, the initial equilibrium (where supply and demand intersect) seems to be around:
  - **Quantity = 500 doughnuts**
  - **Price = $2.50 per doughnut**

### Applying the $0.50 excise tax:
- The tax effectively raises the price of each doughnut from the suppliers’ perspective, shifting the supply curve upward by $0.50.
- The new equilibrium point would have a higher price and a lower quantity.

### Estimating the new equilibrium:
- Based on the graph and the tax amount, we expect the quantity sold after tax to decrease.
- After the shift, the **new equilibrium price** looks to be about **$3.00 per doughnut**, with the **quantity sold** reducing to about **450 doughnuts**.

### Calculating excise tax revenue:
- The excise tax revenue is the tax per unit multiplied by the number of units sold at the new equilibrium.
  \[
  \text{Excise Tax Revenue} = \text{Tax per doughnut} \times \text{Quantity sold after tax}
  \]
  \[
  \text{Excise Tax Revenue} = 0.50 \times 450 = 225
  \]

So, the **excise tax revenue** is **$225**.

Would you like any further details or clarification on this?

### Related Questions:
1. How does the excise tax affect the supply and demand curves?
2. Why does the quantity of doughnuts sold decrease after the excise tax?
3. How do we determine the new equilibrium price after a tax is applied?
4. What would happen if the excise tax were higher than $0.50?
5. How would this excise tax affect consumer surplus and producer surplus?

### Tip:
When an excise tax is introduced, it typically shifts the supply curve upward, meaning suppliers will produce less at each price point, leading to a new, lower equilibrium quantity.

Homer is a doughnut aficionado. Suppose Springfield, his hometown, decides to impose an excise (sales) tax on consumers of $0.50 on each doughnut purchased. What is the revenue generated from this excise tax? Round to the nearest whole number.

This problem explores the impact of an excise tax on doughnuts in Springfield, shifting the supply curve and affecting the equilibrium. Students calculate the new quantity of doughnuts sold and the tax revenue generated, using key economic concepts such as equilibrium and excise taxes. Suitable for Grades 10-12.

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