Question

Figure 18-2

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 Pa- Pcunder either supply curve.
B) is Pb- Pcunder either supply curve.
C) is Pa- Pcif the supply curve is S0 and Pb- Pcif the supply curve is S1.
D) is Pa- Pdif the supply curve is S0 and Pb- Peif the supply curve is S1.

Answer

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