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

question 227

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 greater under the more elastic supply curve S0.
• B)is greater under the less elastic supply curve S0.
• C)is greater under the less elastic supply curve S1.
• D)is the same under either supply curve because there is a single demand curve that captures buyers' market behavior.

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Definitions:

Electronic Devices

Gadgets like smartphones, laptops, and tablets that operate on electrical power and digital information.

Supply of Labor

The total hours that workers in the economy are willing and able to work at a given wage rate.

Demand for Labor

The total amount of workers employers are willing and able to hire at a given wage rate in a certain period.

Unemployment

A situation where individuals who are willing and able to work cannot find a job.