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Figure 18-2 Figure 18-2 Shows a Demand Curve and Two Sets of Curve

Question 206

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Figure 18-2
Figure 18-2     Figure 18-2 shows a demand curve and two sets of supply curves, one set more elastic than the other. -Refer to Figure 18-2.If the government imposes an excise tax of $1.00 on every unit sold, the producer's burden of the tax A) is Pₐ - Pd under either supply curve. B) is Pb - Pₑ under either supply curve. C) is Pₐ - Pd if the supply curve is S₀ and Pb - Pₑ if the supply curve is S₁. D) is Pc - Pd if the supply curve is S₀ and Pc - Pₑ if the supply curve is S₁.
Figure 18-2 shows a demand curve and two sets of supply curves, one set more elastic than the other.
-Refer to Figure 18-2.If the government imposes an excise tax of $1.00 on every unit sold, the producer's burden of the tax


A) is Pₐ - Pd under either supply curve.
B) is Pb - Pₑ under either supply curve.
C) is Pₐ - Pd if the supply curve is S₀ and Pb - Pₑ if the supply curve is S₁.
D) is Pc - Pd if the supply curve is S₀ and Pc - Pₑ if the supply curve is S₁.

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