Suppose Jack Values an Ice Cream Sundae at $4

question 212

Multiple Choice

Suppose Jack values an ice cream sundae at $4.Dianne values an ice cream sundae at $6.The pre-tax price of an ice cream sundae is $2.The government imposes a "fat tax" of $3 on each ice cream sundae,and the price rises to $5.The deadweight loss from the tax is

• A) $4, and the deadweight loss comes from both Jack and Dianne.
• B) $4, and the deadweight loss comes only from Jack because he does not buy a sundae after the tax.
• C) $2, and the deadweight loss comes from both Jack and Dianne.
• D) $2, and the deadweight loss comes only from Jack because he does not buy a sundae after the tax.

---

Definitions:

Wrong Words

Incorrect or inappropriate words used in communication or writing.

Right Hemisphere

The half of the brain that is typically associated with creative thinking, spatial abilities, and the processing of visual and auditory information.

Nonverbal

Pertains to the transfer of information between individuals through means other than spoken words, such as gestures, facial expressions, and body language.

Analysis of Detail

An extensive examination of the intricate elements within a larger entity to understand or solve a specific issue.