Table 12-3 -Refer to Table 12-3.If the Government Imposes a $2.00 Tax

Multiple Choice

Table 12-3

-Refer to Table 12-3.If the government imposes a $2.00 tax on Delights,causing the price to increase from $5.00 to $7.00,why does a deadweight loss arise

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