Understanding Tax Revenue and Deadweight Loss

Explanation:

Introduction to Tax Revenue: When a tax is imposed on a product, the equilibrium price reflects the added tax. In this scenario, the equilibrium price of a glass of red wine increases to $9 after a $3 tax is levied by the government. Each glass of red wine now contributes $3 to tax revenue.

Calculating Tax Revenue: To calculate the total tax revenue collected, we must know the quantity of wine sold at the new equilibrium price. However, since the question does not provide information on the quantity sold, we cannot calculate the total tax revenue. If one glass is sold, the total tax revenue would be $3; if two glasses are sold, it would be $6, and so on. The calculation is simply the tax per unit ($3) multiplied by the quantity sold.

Therefore, the tax revenue collected per glass of red wine is $3. The total tax revenue collected can be determined by multiplying the tax per unit by the quantity of wine sold at the new equilibrium price.