Figure 162 Figure 16

question 107

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 is represented by the area

• A)(P_aP_c × Q_a)if the supply curve is S₀ and (P_bP_c × Q_b)if the supply curve is S₁.
• B)(P_aP_d × Q_a)if the supply curve is S₀ and (P_bP_e × Q_b)if the supply curve is S₁.
• C)(P_aP_e × Q_a)under either supply curve.
• D)(P_bP_e × Q_b)under either supply curve.

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Definitions:

Free Market System

An economic system based on supply and demand with little or no government control, where prices for goods and services are determined in a free price system.

Illegal Conspiracy

An unlawful plan by two or more parties to commit a criminal act or to achieve an illegal end.

Massachusetts Supreme Court

The highest court in the Commonwealth of Massachusetts, responsible for interpreting and applying the law.

Commonwealth v. Hunt

A landmark 1842 Massachusetts Supreme Court case that declared labor unions and strikes legal for the first time in the United States.