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

question 258

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 producer's burden of the tax

• A)is Pa - Pd under either supply curve.
• B)is Pb - Pe under either supply curve.
• C)is Pa - Pd if the supply curve is S0 and Pb - Pe if the supply curve is S1.
• D)is Pc - Pd if the supply curve is S0 and Pc - Pe if the supply curve is S1.

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