Suppose Hillary Values a Large Order of French Fries at $4

question 556

Multiple Choice

Suppose Hillary values a large order of French fries at $4. Bill values a large order of French fries at $7. The pre-tax price of a large order of French fries is $2. The government imposes a "fat tax" of $3 on each large order of French fries, and the price rises to $5. The deadweight loss from the tax is

• A)$4, and the deadweight loss comes from both Hillary and Bill.
• B)$4, and the deadweight loss comes only from Hillary because she does not buy a large French fries after the tax.
• C)$2, and the deadweight loss comes from both Hillary and Bill.
• D)$2, and the deadweight loss comes only from Hillary because she does not buy a large French fries after the tax.

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Definitions:

Contamination

The presence of an unwanted substance or microorganism in a material, environment, or product, posing risk or harm.

Forceps

A hand-held, hinged instrument used in medical procedures for grasping and holding objects.

Grasp Tissue

The act of holding or seizing biological tissue firmly, often with tools, during medical procedures or surgery.

Clamp Blood Vessels

A surgical procedure or technique involving the use of a clamp to temporarily stop or restrict blood flow through a vessel.