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

Multiple Choice

Table 12-2
-Refer to Table 12-2. Suppose that the government imposes a $2 tax on delights, causing the price to increase from $4.00 to $6.00. Deadweight loss arises because

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