Suppose Jack Values an Ice Cream Sundae at $4

question 212

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) $4, and the deadweight loss comes from both Jack and Dianne.
• B) $4, and the deadweight loss comes only from Jack because he does not buy a sundae after the tax.
• C) $2, and the deadweight loss comes from both Jack and Dianne.
• D) $2, and the deadweight loss comes only from Jack because he does not buy a sundae after the tax.

---

Definitions:

Critical Event

an important occurrence that has a significant impact on an individual, group, or system, often used as a focal point in research or analysis.

Research Entity

An organization, structure, or individual involved in the execution, funding, or facilitation of scholarly investigations.

Longitudinal Case Study

A study that follows the same subjects over a period of time, observing developments or changes in relation to a specific phenomenon.

Time Points

Specific moments or periods at which measurements or observations are taken during a study, allowing for the analysis of changes or outcomes over time.