https://file.aiquickdraw.com/mathbot/file/1730616079198bm7xbzhc.jpg

To solve these questions, let's analyze the graph and the concept of excise tax revenue.

### Step 1: Understanding the Graph and the Tax Revenue Calculation

The graph shows:
1. **Demand Curve** (red line) - Downward sloping.
2. **Supply Curve** (blue line) - Upward sloping.
   
The **intersection point** of these curves represents the **equilibrium price** and **equilibrium quantity** without any tax. When an excise tax is imposed, it creates a gap between the price that consumers pay and the price that producers receive. This gap, known as the **tax wedge**, causes a reduction in the equilibrium quantity.

### Step 2: Calculate Equilibrium Quantity Without Tax

From the graph:
- The **equilibrium quantity** (where supply and demand intersect) is approximately **40,000 jumps**.
- The **equilibrium price** at this quantity is approximately **$100**.

### Step 3: Calculate Tax Revenue for Each Given Tax Amount

The tax revenue generated by a per-unit tax is calculated by:
\[
\text{Tax Revenue} = \text{Tax Amount} \times \text{New Quantity after Tax}
\]
To find the **new quantity after tax**, we need to look at how the tax affects the equilibrium by shifting the supply curve upwards by the tax amount, which reduces the quantity.

#### Question A: Tax of $80 per jump

1. With an $80 tax, the price consumers pay will rise above the equilibrium, and the price received by suppliers will fall. 
2. From the graph:
   - When the tax is $80, the new quantity traded appears to be **around 20,000** jumps.
3. **Tax Revenue**:
   \[
   80 \times 20,000 = 1,600,000
   \]
   **Answer:** $1,600,000

#### Question B: Tax of $40 per jump

1. With a $40 tax, we look for the new equilibrium quantity by examining the graph.
2. The new quantity traded is approximately **30,000** jumps.
3. **Tax Revenue**:
   \[
   40 \times 30,000 = 1,200,000
   \]
   **Answer:** $1,200,000

#### Question C: Tax of $120 per jump

1. With a $120 tax, the new equilibrium quantity from the graph appears to be approximately **10,000** jumps.
2. **Tax Revenue**:
   \[
   120 \times 10,000 = 1,200,000
   \]
   **Answer:** $1,200,000

---

### Summary of Answers

1. **Tax of $80 per jump:** $1,600,000
2. **Tax of $40 per jump:** $1,200,000
3. **Tax of $120 per jump:** $1,200,000

Would you like further explanation on any of these steps? 

---

Here are some related questions that could expand your understanding:

1. How does the elasticity of demand and supply affect tax revenue?
2. Why does increasing the tax rate not always increase tax revenue?
3. What impact does an excise tax have on consumer and producer surplus?
4. How does the tax burden divide between consumers and producers?
5. What is the economic concept of deadweight loss and how does it relate to taxation?

**Tip:** When analyzing tax impacts on markets, always check how much quantity changes due to the tax, as higher taxes can reduce quantity and thus reduce overall revenue.

What would the government's tax revenue be if it imposes a tax of $80, $40, and $120 per bungee jump?

Learn how to calculate the government’s tax revenue on bungee jumps in XtremeLand by analyzing changes in supply and demand. Explore the impact of $80, $40, and $120 taxes on quantity and revenue. Suitable for high school economics students.

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