Suppose Tyler Values a Basketball at $20

question 247

Multiple Choice

Suppose Tyler values a basketball at $20. Jacqui values a basketball at $16. The pre-tax price of a basketball $15. The government imposes a tax of $2 on each basketball, and the price rises to $17. The deadweight loss from the tax is

• A)$1.
• B)$2.
• C)$3.
• D)$6.

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Definitions:

Punishment And Obedience

Punishment and obedience involve the application of penalties for wrongdoing in order to enforce compliance with laws, rules, or commands.

Avoid Punishment

Actions or strategies employed to escape or mitigate consequences set by legal, institutional, or social systems.

Moral Appreciation

The capacity to recognize and value moral qualities or ethical dimensions in actions and decisions.

Sympathy

The feeling of pity or sorrow for someone else's misfortune.