Figure 8-21 -Refer to Figure 8-21.Suppose the Government Places a $3 Per-Unit

Multiple Choice

Figure 8-21
-Refer to Figure 8-21.Suppose the government places a $3 per-unit tax on this good.The smallest deadweight loss from the tax would occur in a market where demand is represented by

A) Demand 1,and supply is represented by Supply 1.
B) Demand 1,and supply is represented by Supply 2.
C) Demand 2,and supply is represented by Supply 1.
D) Demand 2,and supply is represented by Supply 2.