Figure 162 Figure 16

Multiple Choice

Figure 16.2 Figure 16.2 shows a demand curve and two sets of supply curves, one set more elastic than the other.
-Refer to Figure 16.2.If the government imposes an excise tax of $1.00 on every unit sold, the producer's burden of the tax

A) is greater under the more elastic supply curve S₀.
B) is greater under the less elastic supply curve S₀.
C) is greater under the less elastic supply curve S₁.
D) is the same under either supply curve because there is a single demand curve that captures buyers' market behaviour.