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Stacy Places a $20 Value on a Bottle of Wine,and

Question 218

Multiple Choice

Stacy places a $20 value on a bottle of wine,and Andrea places a $17 value on it.The equilibrium price for a bottle of wine is $15.Suppose the government levies a tax of $1 on each bottle of wine,and the equilibrium price of a bottle of wine increases to $16.What is total consumer surplus after the tax is levied?


A) $2
B) $3
C) $4
D) $5

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