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

question 152

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,what happens to total consumer surplus

• A)It will fall from $3 to $1.
• B)It will fall from $4 to $1.
• C)It will fall from $7 to $3.
• D)It will fall from $7 to $4.

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Definitions:

Cognitive Dissonance Theory

A psychological theory suggesting that individuals experience discomfort when holding two or more contradictory beliefs, attitudes, or values, leading them to attempt to reduce the dissonance.

Theory of Planned Behavior

A theory in psychology that forecasts a person's likelihood of performing a specific action at a given time and location, taking into account their attitudes, societal expectations, and their sense of control over the behavior.

Psychological Reactance

A motivational reaction to offers, persons, rules, or regulations that threaten or eliminate specific behavioral freedoms.

Resistance Effect

A phenomenon where individuals or groups oppose change or policies, often due to perceived threat to autonomy or norms.