Suppose Rebecca Needs a Dog Sitter So That She Can

Multiple Choice

Suppose Rebecca needs a dog sitter so that she can travel to her sister's wedding.Rebecca values dog sitting for the weekend at $200.Susan is willing to dog sit for Rebecca so long as she receives at least $175.Rebecca and Susan agree on a price of $185.Suppose the government imposes a tax of $30 on dog sitting.What is the deadweight loss of the tax?

A) the maximum value that Rebecca would pay for dog sitting
B) the $30 tax
C) the lost benefit to Rebecca and Susan because after the tax,Susan will not dog sit for Rebecca
D) the lost benefit to Rebecca of being unable to hire a dog sitter because Rebecca is the one who would pay the tax