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

question 141

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 falls by less than the tax revenue generated.
• B)It falls by more than the tax revenue generated.
• C)It falls by the same amount as the tax revenue generated.
• D)It will not fall since Jennifer will no longer be in the market.

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