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

question 195

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.

---

Definitions:

Economic Opportunities

Refers to the chances or prospects available within a society for individuals or groups to improve their financial and social status through employment, entrepreneurship, and investment.

Fourteenth Amendment

An amendment to the US Constitution, ratified in 1868, granting citizenship to all persons born or naturalized in the United States, including former slaves, and guaranteeing all citizens equal protection of the laws.

Ratification

The formal approval or confirmation of an agreement, treaty, constitution, or law, making it officially valid and binding.

Southern Legislatures

The legislative bodies governing the states in the southern United States, particularly in reference to periods of significant historical context, such as during Reconstruction or the Civil Rights Movement.