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

question 18

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 consumer's burden of the tax A) is Pa - Pc under either supply curve. B) is Pb - Pc under either supply curve. C) is Pa - Pc if the supply curve is S0 and Pb - Pc if the supply curve is S1. D) is Pa - Pd if the supply curve is S0 and Pb - Pe if the supply curve is S1. 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 consumer's burden of the tax

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