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) (PbPe × Qb) under either supply curve.
C) (PaPd × Qa) if the supply curve is S0 and (PbPe × Qb) if the supply curve is S1.
D) (PaPe × Qa) under either supply curve.
C
Economics
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An increase in the price level means that
A) long-run aggregate supply has increased. B) monetary policy has been contractionary. C) the value of the dollar has increased. D) the purchasing power of money has fallen.
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