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

question 234

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 government's revenue from the tax is represented by the area

• A)(PaPc × Qa)if the supply curve is S0 and (PbPc × Qb)if the supply curve is S1.
• B)(PaPd × Qa)if the supply curve is S0 and (PbPe × Qb)if the supply curve is S1.
• C)(PaPe × Qa)under either supply curve.
• D)(PbPe × Qb)under either supply curve.

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