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 government's revenue from the tax is represented by the area

A) (P_aP_c × Q_a) if the supply curve is S₀ and (P_bP_c × Q_b) if the supply curve is S₁.
B) (P_aP_d × Q_a) if the supply curve is S₀ and (P_bP_e × Q_b) if the supply curve is S₁.
C) (P_aP_e × Q_a) under either supply curve.
D) (P_bP_e × Q_b) under either supply curve.