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

question 43

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,the government's revenue from the tax

• A)is larger if the supply curve is S0.
• B)is larger if the supply curve is S1.
• C)is identical under either supply curve.
• D)is not maximized.

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Definitions:

Wrongfully Discharged

Termination of an employee in violation of legal rights or the terms of an employment contract.

Mitigate Damages

The legal principle that requires a party suffering loss or injury to take reasonable action to minimize the extent of the damage or loss.

Employment Contract

A formal agreement specifying the terms and conditions under which an employee agrees to perform certain duties for an employer.

Right of First Refusal

A legal right allowing the possessor to initiate a business deal with the owner of an asset, prior to the owner having the right to engage in that deal with another party.