Scenario 12-1 Skip Places a $20 Value on a Bottle of Wine

question 197

Multiple Choice

Scenario 12-1
Skip places a $20 value on a bottle of wine, and Walt places a $17 value on it. The equilibrium price for a bottle of wine is $15.
-Refer to Scenario 12-1.Suppose the government levies a tax of $3 on each bottle of wine,and the equilibrium price of a bottle of wine increases to $18.What is total consumer surplus after the tax is levied?

• A) $0
• B) $2
• C) $5
• D) $6

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