Refer to the above figure. A unit tax of 2 has been placed on the good. Which of the following statements is TRUE about the vertical distance between S1 and S2?
A) The distance is less than 2.
B) The distance is 2.
C) The distance is more than 2.
D) The distance cannot be determined with the information given.
Question 2
The two basic types of government regulation are
A) regulation of natural monopolies and regulation of cartels.
B) economic regulation and industry regulation.
C) social regulation and labor law.
D) social regulation and economic regulation.
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Figure 2.15.jpg