Figure 18-2 Shows a Demand Curve and Two Sets of Supply

question 148

Multiple Choice

Figure 18-2 shows a demand curve and two sets of supply curves,one set more elastic than the other.
-Refer to Figure 18-2.If the government imposes an excise tax of $1.00 on every unit sold,what is the size of the deadweight loss,if there is any?

• A)the area adc if the supply curve is S0 and the area bec if the supply curve is S1.
• B)the area afcd if the supply curve is S0 and the area bfce if the supply curve is S1.
• C)the area becf under either supply curve.
• D)There is no deadweight loss;revenue raised is used to fund government projects.

---

Definitions:

Environmental Waste

Materials or substances that are discarded after use and are considered to be harmful to the environment.

Electricity Consumed

The amount of electrical energy used by appliances, devices, or systems over a specific period.

Top Status Bar

A visual element typically found at the top of a screen or window that displays information about the current state or status of the system or application.

AutoCalculate Area

A feature in spreadsheet software that automatically calculates and displays the sum, average, or other statistics for selected cells.