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

question 72

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, what is the size of the deadweight loss, if there is any?

• A)the area adc if the supply curve is S₀ and the area bec if the supply curve is S₁.
• B)the area afcd if the supply curve is S₀ and the area bfce if the supply curve is S₁.
• C)the area becf under either supply curve.
• D)There is no deadweight loss; revenue raised is used to fund government projects.

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Definitions:

Three-Strikes Laws

Legislation that imposes severe penalties on repeat offenders, usually mandating a life sentence on the third conviction of a serious crime.

Brutally Remorseless

Describes an individual or action that is extremely cruel without any sign of regret or guilt.

Violent Crimes

Acts of crime that involve force or threat of force against others, including robbery, assault, and murder.

Radically Impulsive

Characterized by sudden and unreflective actions or decisions, often without consideration of consequences.