s imposes at Question 18 Not yet answered Points out of 100

s imposes at Question 18 Not yet answered Points out of 1.00 P Flag question who buys an offroad vehicle and the town distributes the revenues collected from the tax equally among all residents of Los Lobos. With the tax in place, how many people in Los Lobos will buy offroad vehicles and how much tax revenue will the government distribute to each resident? Select one: O a. 50 residents will buy offroad vehicles and each resident will get a rebate of $500 b, 10 residents will buy offroad vehicles and each resident will get a rebate of $100. c. Nobody will buy an offroad vehicle and there will be no rebates. d. Everybody will buy an offroad vehicle and everyone will get a rebate of S 1000. e.10 residents will buy offroad vehicles and each resident will get a rebate of $1000

Solution

Option b is correct

10 residents who have a reservation price > $2300 (= $1300 + $1000) would purchase the offroad vehicles.

Tax revenue = 1000 x 10

Rebate (each citizen receives) = 1000 x 10/100 = $100