Multiple Choice
Scenario 12-2
Suppose Regina and Ben receive great satisfaction from their consumption of cheesecake. Regina would be willing to purchase only one slice and would pay up to $13 for it. Ben would be willing to pay $17 for his first slice, $14 for his second slice, and $10 for his third slice. The current market price is $10 per slice.
-Refer to Scenario 12-2. Assume that the government places a $4 tax on each slice of cheesecake and that the new equilibrium price is $14. How much tax revenue will be generated from sales to Regina and Ben?
A) $0
B) $17
C) $3
D) $14
Correct Answer:
Verified
Correct Answer:
Verified
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