Figure 15.2 Figure 15.2 Shows a Demand Curve and Two Sets of Curve

Multiple Choice

Figure 15.2

Figure 15.2 shows a demand curve and two sets of supply curves, one set more elastic than the other.
-Refer to Figure 15.2.If the government imposes an excise tax of $1.00 on every unit sold, what is the size of the deadweight loss, if there is any?

A) the area adc if the supply curve is S₀ and the area bec if the supply curve is S₁.
B) the area afcd if the supply curve is S₀ and the area bfce if the supply curve is S₁.
C) the area becf under either supply curve.
D) There is no deadweight loss; revenue raised is used to fund government projects.