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

question 129

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 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:

Consignment

Goods from a producer to a commission merchant for sale at the best possible price.

Total Gross Pay

The total amount earned by an employee before any deductions or taxes are applied.

Commission

Commission is a fee paid to an agent or employee for transacting a piece of business or performing a service, often a percentage of the sale.

Monthly Salary

A fixed amount of money or compensation paid to an employee by an employer for services rendered during a month.