Exhibit 19-6 ​

Multiple Choice

Exhibit 19-6
​

-Refer to Exhibit 19-6. Let S₁ be the supply curve of a firm. If S₂ represents the supply curve of the same firm after the government imposes a per-unit tax, the tax is

A) $1 per unit.
B) $2 per unit.
C) $3 per unit.
D) -$1 per unit, i.e., a subsidy of $1.