Exhibit 19-6 -Refer to Exhibit 19-6. Let S₁ be the supply curve of a producer. If S₂ is the supply curve of the same producer after the government imposes a per-unit tax, the tax revenue generated will be A)greater if D₁ is the demand curve facing the firm. B)greater if D₂ is the demand curve facing the firm. C)the same regardless of which demand curve the firm faces. D)Any of the above, depending on the type of good the tax is imposed on.

Question

Quizplus · Accepted Answer

The Answer of Exhibit 19-6 -Refer to Exhibit 19-6. Let S₁ be the supply curve of a producer. If S₂ is the supply curve of the same producer after the government imposes a per-unit tax, the tax revenue generated will be A)greater if D₁ is the demand curve facing the firm. B)greater if D₂ is the demand curve facing the firm. C)the same regardless of which demand curve the firm faces. D)Any of the above, depending on the type of good the tax is imposed on.

Exhibit 19-6 ​

Exhibit 19-6