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

question 43

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

• A)is larger if the supply curve is S0.
• B)is larger if the supply curve is S1.
• C)is identical under either supply curve.
• D)is not maximized.

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