Table 12-4 -Refer to Table 12-4.Suppose That the Government Imposes a $2

question 213

Multiple Choice

Table 12-4

-Refer to Table 12-4.Suppose that the government imposes a $2 tax on delights,causing the price to increase from $5.00 to $7.00.Deadweight loss arises because

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

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