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

A) is larger if the supply curve is S₀.
B) is larger if the supply curve is S₁.
C) is identical under either supply curve.
D) is not maximised.