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

question 365

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. Which of the following statements is correct?

• A)Roger will bear the full burden of the deadweight loss.
• B)Regina will bear the full burden of the deadweight loss.
• C)Both Regina and Roger will share the burden of the deadweight loss.
• D)There will be no deadweight loss.

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Definitions:

Tympanometry

A diagnostic test that measures the movement of the eardrum in response to changes in air pressure, assessing middle ear function.

Ossicle

Small bones, particularly referring to the three bones found in the middle ear: the malleus, incus, and stapes.

Otoscopy

A medical examination technique that involves looking inside the ear using an instrument called an otoscope.

Electronystagmography

A diagnostic test that records involuntary movements of the eye (nystagmus) to assess the vestibular system.