Suppose Luke Values a Scoop of Italian Gelato at $4

question 42

Multiple Choice

Suppose Luke values a scoop of Italian gelato at $4. Leia values a scoop of Italian gelato at $6. The pre-tax price of a scoop of Italian gelato is $2. The government imposes a "fat tax" of $3 on each scoop of Italian gelato, and the price rises to $5. The deadweight loss from the tax is

• A)$1.
• B)$2.
• C)$3.
• D)$4.

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Definitions:

Correcting

The act of identifying and rectifying errors or faults.

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Behaviors by employees that are not part of their formal job requirements but help to enhance organizational functioning.

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The act of working together towards a common goal, often involving the pooling of resources or effort.

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The quality of providing useful assistance or support to others, often contributing positively to a goal or task.