Table 12-3 -Refer to Table 12-3.If the Government Imposes a $2.00 Tax

question 57

Multiple Choice

Table 12-3

-Refer to Table 12-3.If the government imposes a $2.00 tax on Delights,causing the price to increase from $5.00 to $7.00,why does a deadweight loss arise

• A)Jennifer will pay more tax as a percentage of her value of Delights than Tsering.
• B)Tsering must pay the $2.00 tax from his consumer surplus.
• C)Tsering will have to pay a higher price for Delights.
• D)Jennifer will leave the market.

---

Definitions:

Weak Reason

an argument or justification that lacks sufficient evidence, strength, or clarity, thus reducing its persuasiveness.

Omit

To leave out or exclude something, either intentionally or forgetfully.

Refusal

The act of declining or rejecting an offer, request, or invitation.

Product Recall

A request to return a product after the discovery of safety issues or product defects that might endanger the consumer or put the maker/seller at risk of legal action.