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

question 518

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. How much tax revenue will be generated from sales to Regina and Roger?

• A)zero
• B)$4
• C)$8
• D)$12

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Definitions:

Modern Reflexivity

The capacity of modern societies to think about, analyze, and adapt their traditions and institutions in the light of new information or challenges.

Large-Scale Social Institutions

Organized, established systems in society that govern the behavior and expectations of individuals within a community.

Similar Processes

Refers to analogous methods or sequences of actions that occur in different contexts but produce comparable outcomes or effects.

Fast Food

A type of mass-produced food designed for commercial resale and with a strong priority placed on "speed of service" over other quality factors.