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

question 331

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 $1 on each bottle of wine,and the equilibrium price of a bottle of wine increases to $16.Because total consumer surplus has

• A) fallen by more than the tax revenue, the tax has a deadweight loss.
• B) fallen by less than the tax revenue, the tax has no deadweight loss.
• C) fallen by exactly the amount of the tax revenue, the tax has no deadweight loss.
• D) increased by less than the tax revenue, the tax has a deadweight loss.

---

Definitions:

Cultural Differences

Variations in the practices, values, and customs among diverse groups of people that can impact social interactions, business, and personal relationships.

Personal Failure

Experiences of not meeting personal or professional expectations or goals, often viewed as learning opportunities.

Professional Failure

A situation where an individual or organization fails to meet professional standards or objectives in their field of work.

Attribute of Grit

A quality of perseverance and passion for long-term goals, demonstrating resilience and determination.