A government is considering how to fund additional spending on green energy infrastructure. One option is to raise the rate of tax charged on the profits of medium-sized enterprises from 15% to 22%.
All other things being equal, for every 8 firms earning profits of £2 million£2\text{ million}£2 million, by how much could the government increase its spending on green energy without affecting the budget balance?
£140 000£140\ 000£140 000
£1 120 000£1\ 120\ 000£1 120 000
£2 400 000£2\ 400\ 000£2 400 000
£3 520 000£3\ 520\ 000£3 520 000
