Suppose Jack Values an Ice Cream Sundae at $4

question 219

Multiple Choice

Suppose Jack values an ice cream sundae at $4.Dianne values an ice cream sundae at $6.The pre-tax price of an ice cream sundae is $2.The government imposes a "fat tax" of $3 on each ice cream sundae,and the price rises to $5.The deadweight loss from the tax is

• A) $1.
• B) $2.
• C) $3.
• D) $4.

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Definitions:

Radio Disc Jockey

An individual who plays recorded music and often interacts with listeners on a radio station.

Jackpot

A large cash prize or award, often in gambling or competitions, that accumulates until it is won.

Biological Constraints

Limitations on learning that result from biological factors or genetic predispositions.

Evolved

The process through which species undergo changes over time through natural selection, leading to new adaptations, forms, or species.