Multiple Choice
Scenario 12-1
Ken places a $20 value on a cigar, and Mark places a $17 value on it. The equilibrium price for this brand of cigar is $15.
-Refer to Scenario 12-1. Suppose the government levies a tax of $1 on each cigar, and the equilibrium price of a cigar increases to $16. What is total consumer surplus after the tax is levied?
A) $2
B) $3
C) $4
D) $5
Correct Answer:
Verified
Correct Answer:
Verified
Q16: Some colleges charge all students the same
Q117: The United States federal government has a
Q183: Horizontal equity can be difficult to assess
Q209: The administrative burden of any tax system
Q422: The largest source of federal revenue in
Q459: Which of the following tax systems is
Q461: Suppose the government taxes 30 percent of
Q462: Which of the following is a characteristic
Q464: Nancy paid a tax of $0.50 on
Q467: If revenue from a cigarette tax is