Scenario 12-2 Suppose Roger and Regina Receive Great Satisfaction from Their Consumption

question 453

Multiple Choice

Scenario 12-2
Suppose Roger and Regina receive great satisfaction from their consumption of cheesecake. Regina would be willing to purchase only one slice and would pay up to $8 for it. Roger would be willing to pay $11 for his first slice, $9 for his second slice, and $5 for his third slice. The current market price is $5 per slice.
-Refer to Scenario 12-2.Assume that the government places a $4 tax on each slice of cheesecake and that the new equilibrium price is $9.What is the deadweight loss of the tax?

• A) $3
• B) $6
• C) $8
• D) $9