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Figure 18-2 Figure 18-2 Shows a Demand Curve and Two

question 152

Multiple Choice

Figure 18-2 Figure 18-2   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 producer's burden of the tax A)  is greater under the more elastic supply curve S<sub>0</sub>. B)  is greater under the less elastic supply curve S<sub>0</sub>. C)  is greater under the less elastic supply curve S<sub>1</sub>. D)  is the same under either supply curve because there is a single demand curve that captures buyers' market behavior. 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 producer's burden of the tax


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