Figure 162 Figure 16

question 71

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 producer's burden of the tax

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

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