Refer to Figure 18-2. If the government imposes an excise tax of $1.00 on every unit sold
A) the deadweight loss is greater under the supply curve S0.
B) the deadweight loss is greater under the supply curve S1.
C) the deadweight loss is identical under either supply curve.
D) there is no deadweight loss since revenue raised is used to fund government projects.
A
Economics
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