Multiple Choice
Scenario 12-3
Suppose Roger and Regina receive great satisfaction from their consumption of cheesecake. Regina would be willing to purchase only one slice and would pay up to $8 for it. Roger would be willing to pay $11 for his first slice, $9 for his second slice, and $5 for his third slice. The current market price is $5 per slice.
-Refer to Scenario 12-3. Assume that the government places a $4 tax on each slice of cheesecake and that the new equilibrium price is $9. How much tax revenue will be generated from sales to Regina and Roger?
A) zero
B) $4
C) $8
D) $12
Correct Answer:
Verified
Correct Answer:
Verified
Q17: Time spent filling out tax forms, time
Q24: Antipoverty programs funded by taxes on the
Q58: Scenario 12-5<br>Senator Filch argues that a tax
Q134: A lump sum tax can never have
Q166: Rob's income rises from $50,000 to $60,000
Q186: Table 12-21<br>The dollar amounts in the last
Q513: Special tax treatment given to specific types
Q515: If the government were to impose a
Q517: Tax systems that impose recordkeeping requirements on
Q519: Table 12-5 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1273/.jpg" alt="Table 12-5