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Refer to the Above Figure in Which S Is the Before-Tax

Question 101

Multiple Choice

  Refer to the above figure in which S is the before-tax supply curve and S<sub>t</sub> is the supply curve after an excise tax is imposed.The total tax collection from this excise tax will be area: A)  ABCE + ECF. B)  ABCE. C)  ECF. D)  0BCG. Refer to the above figure in which S is the before-tax supply curve and St is the supply curve after an excise tax is imposed.The total tax collection from this excise tax will be area:


A) ABCE + ECF.
B) ABCE.
C) ECF.
D) 0BCG.

Correct Answer:

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