Table 12-2 -Refer to Table 12-2. Suppose That the Government Imposes a Government

question 248

Multiple Choice

Table 12-2
-Refer to Table 12-2. Suppose that the government imposes a $2 tax on delights, causing the price to increase from $4.00 to $6.00. Deadweight loss arises because

• A)Lucy will pay more tax as a percentage of her value of delights than Ricky.
• B)Ricky must pay the $2.00 tax from his consumer surplus.
• C)Ricky will have to pay a higher price for delights.
• D)Lucy will leave the market.

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Definitions:

Plastic Trash

Waste material consisting of discarded items made of plastic, often found polluting environments such as oceans, rivers, and landscapes.

Durable Items

Goods or products designed to last for a long period without frequent replacement, typically including appliances, cars, and furniture.

Plant Cover

The layer of vegetation that covers the ground, which can reduce soil erosion and provide habitat for wildlife.

Transpiration

Evaporation of water from aboveground plant parts.