Figure 162 Figure 16

question 104

Multiple Choice

Figure 16.2 Figure 16.2 shows a demand curve and two sets of supply curves, one set more elastic than the other.
-Refer to Figure 16.2.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 maximised.

---

Definitions:

Mom And Pop

Small, family-owned, and operated businesses, typically offering personalized service.

Chain Restaurants

Restaurants that are part of a brand or franchise, featuring standardized menu items and decor, and operated by a single company or franchisees across multiple locations.

Labor Dependent

Industries or activities heavily reliant on human labor as a primary input or resource for production.

Monopolistic Competitor

A firm in a market structure where many companies sell products that are similar but not identical, leading to non-price competition.