Figure 122 Figure 12

question 69

Multiple Choice

Figure 12.2 Figure 12.2 shows a demand curve and two sets of supply curves, one set more elastic than the other.
-Refer to Figure 12.2.If the government imposes an excise tax of $1.00 on every unit sold,the consumer's burden of the tax

• A) is P_a - P_c under either supply curve.
• B) is P_b - P_c under either supply curve.
• C) is P_a - P_c if the supply curve is S₀ and P_b - P_c if the supply curve is S₁.
• D) is P_a - P_d if the supply curve is S₀ and P_b - P_e if the supply curve is S₁.

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Definitions:

Cheesecake

A sweet dessert consisting of one or more layers, primarily a thick layer of cream cheese and egg mixture set atop a base made from crushed cookies, crackers, or sponge cake.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, leading to market stability where there is no excess supply or demand.

Consumption Tax

A tax on the spending on goods and services purchased by consumers.

Income

Regular revenue generated through employment or by making investments.