The Diagram Below Shows Supply and Demand Diagrams (S and D)for

question 108

Multiple Choice

The diagram below shows supply and demand diagrams (S and D) for some product.The government then imposes an excise tax.The new supply curve is . FIGURE 18-4
-Refer to Figure 18-4.What is the dollar value of the excess burden of this tax?

• A)$1
• B)$2
• C)$5
• D)$10
• E)$40

---

Definitions:

Accrued Interest

Interest that has been earned but not yet paid.

Semiannually

Occurring twice a year, typically used in the context of payments, interest calculations, or reports.

Semiannually

Occurring twice a year or every six months.

Accrued Interest

The interest that has accumulated on a bond or other fixed-income security since the last interest payment was made.