Title: Figure 18-2 shows a demand curve and two sets of supply curves, one set more elastic than ...
Post by: avinash0312 on Mar 2, 2019
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, what is the size of the deadweight loss, if there is any?
• the area adc if the supply curve is S0 and the area bec if the supply curve is S1.
• the area afcd if the supply curve is S0 and the area bfce if the supply curve is S1.
• the area becf under either supply curve.
• There is no deadweight loss; revenue raised is used to fund government projects.
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?
• the area adc if the supply curve is S0 and the area bec if the supply curve is S1.
• the area afcd if the supply curve is S0 and the area bfce if the supply curve is S1.
• the area becf under either supply curve.
• There is no deadweight loss; revenue raised is used to fund government projects.
Title: -2Figure 18-2 shows a demand curve and two sets of supply curves, one set more elastic than ...
Post by: osvaldoguzman on Mar 2, 2019
the area adc if the supply curve is S0 and the area bec if the supply curve is S1.