-Refer to Figure 16-2

Multiple Choice

-Refer to Figure 16-2. If the government imposes an excise tax of $1.00 on every unit sold, what is the size of the deadweight loss, if there is any?

A) the area adc if the supply curve is S₀ and the area bec if the supply curve is S₁
B) the area afcd if the supply curve is S₀ and the area bfce if the supply curve is S₁
C) the area becf under either supply curve
D) There is no deadweight loss; revenue raised is used to fund government projects.