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

question 291

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.Total consumer surplus will fall from

• A) $4 to $1.
• B) $7 to $4.
• C) $3 to $1.
• D) $7 to $3.

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