FIGURE 18-3 -Refer to Figure 18-3.Suppose That Supply Is Perfectly Elastic and Elastic

Multiple Choice

FIGURE 18-3
-Refer to Figure 18-3.Suppose that supply is perfectly elastic and the price of this good is initially P₁.If an excise tax raises the price from P₁ to P₄,the excess burden of the tax is

A) the area P₃AP₄.
B) the area P₁Cq₁0.
C) the area P₁CP₄.
D) the area BFC.
E) impossible to calculate from the given information.