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

question 148

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,what is the size of the deadweight loss,if there is any?

• A)the area adc if the supply curve is S0 and the area bec if the supply curve is S1.
• B)the area afcd if the supply curve is S0 and the area bfce if the supply curve is S1.
• C)the area becf under either supply curve.
• D)There is no deadweight loss;revenue raised is used to fund government projects.

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Definitions:

Growth Spurts

Rapid periods of physical growth in height and weight that typically occur during adolescence.

Dendrites

The branched projections of a neuron that act to conduct the electrochemical stimulation received from other neural cells to the body, or soma, of the neuron.

Neurons

Specialized cells in the nervous system that transmit information through electrical and chemical signals.

Neonates

Infants, especially in the first four weeks after birth, highlighting the very early stages of childhood development.