Figure 15.2 Figure 15.2 Shows a Demand Curve and Two Sets of Curve

question 4

Multiple Choice

Figure 15.2

Figure 15.2 shows a demand curve and two sets of supply curves, one set more elastic than the other.
-Refer to Figure 15.2.If the government imposes an excise tax of $1.00 on every unit sold, the producer's burden of the tax

• A)is Pₐ - Pd under either supply curve.
• B)is Pb - Pₑ under either supply curve.
• C)is Pₐ - Pd if the supply curve is S₀ and Pb - Pₑ if the supply curve is S₁.
• D)is Pc - Pd if the supply curve is S₀ and Pc - Pₑ if the supply curve is S₁.

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