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

question 81

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 government's revenue from the tax is represented by the area

• A)(PₐPc × Qₐ)if the supply curve is S₀ and (PbPc × Qb)if the supply curve is S₁.
• B)(PₐPd × Qₐ)if the supply curve is S₀ and (PbPₑ × Qb)if the supply curve is S₁.
• C)(PₐPₑ × Qₐ)under either supply curve.
• D)(PbPₑ × Qb)under either supply curve.

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Definitions:

Time Deposits

Bank deposits that cannot be withdrawn for a certain term or period of time without incurring a penalty.

Large Denomination

Refers to currency or financial instruments issued in large amounts, often used for major transactions or investments.

Bank Failures

Occurrences where a bank is unable to meet its obligations to its depositors or other creditors because it has become insolvent or too illiquid to meet its liabilities.

Commercial Banks

Financial institutions that offer a wide range of services, including deposits, loans, and other financial products to businesses and individuals.