Scenario 12-3 Suppose Roger and Regina Receive Great Satisfaction from Their Consumption

question 537

Multiple Choice

Scenario 12-3
Suppose Roger and Regina receive great satisfaction from their consumption of cheesecake. Regina would be willing to purchase only one slice and would pay up to $8 for it. Roger would be willing to pay $11 for his first slice, $9 for his second slice, and $5 for his third slice. The current market price is $5 per slice.
-Refer to Scenario 12-3. Assume that the government places a $4 tax on each slice of cheesecake and that the new equilibrium price is $9. What is Regina's consumer surplus from cheesecake?

• A)zero
• B)$2
• C)$3
• D)$6

---

Definitions:

Negative Emotional Responses

Reactions characterized by feelings such as sadness, anger, fear, or disgust, typically as a result of stimuli perceived as negative or threatening.

Base Rates

The prevalence of a characteristic or behavior in a general population, used as a reference point in statistical analysis.

Decision-making

The cognitive process of choosing between two or more alternatives, resulting in a final choice or action.

Risk Factor

A risk factor is any attribute, characteristic, or exposure that increases the likelihood of developing a disease or injury.