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Suppose Rebecca Needs a Dog Sitter So That She Can

Question 226

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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 $150.Rebecca and Susan agree on a price of $175.Suppose the government imposes a tax of $10 on dog sitting.The tax has made Rebecca and Susan worse off by a total of


A) $50.
B) $40.
C) $20.
D) $10.

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