-Which of the Following Is NOT True About the $3

question 311

Multiple Choice

-Which of the following is NOT true about the $3 per pizza tax illustrated in the above figure?

• A) It decreases consumer surplus by $90 thousand.
• B) It decreases producer surplus by $45 thousand.
• C) It creates a deadweight loss of $135 thousand.
• D) None of the above because they are all true.

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Definitions:

Contracts

Legally binding agreements between two or more parties that outline obligations, rights, and terms to which the parties have agreed.

Anchored

Fixed firmly in position; a term often used metaphorically to describe something that is firmly established or secure.

Flexes

The action of bending a limb or joint or the ability to bend a muscle.

Musculoskeletal

Pertaining to the muscular and skeletal systems.