In the Absence of Taxes,Janet Would Prefer to Purchase a Large

Multiple Choice

In the absence of taxes,Janet would prefer to purchase a large sport utility vehicle (SUV) .However,the government has recently decided to place a $10,000 nuisance tax on SUVs.Which statement best reflects the effect of this tax if Janet decides to purchase a small economy car as a result of the tax

A) Other people who choose to purchase SUVs will incur the cost of the deadweight loss of the tax.
B) There are no deadweight losses as long as some people still choose to purchase SUVs.
C) All deadweight losses are mitigated if there is a net decrease in air pollution.
D) Janet is worse off, and her loss of welfare is part of the deadweight loss of the tax.