Figure 18-2 Figure 18-2 Shows a Demand Curve and Two

Multiple Choice

Figure 18-2 Figure 18-2 shows a demand curve and two sets of supply curves, one set more elastic than the other.
-Refer to Figure 18-2. 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 maximized.