Suppose Ashley needs a dog sitter so that she can travel to her sister's wedding.Ashley values dog sitting for the weekend at $200.Cami is willing to dog sit for Ashley so long as she receives at least $150.Ashley and Cami agree on a price of $175.Suppose the government imposes a tax of $10 on dog sitting.The tax has made Ashley and Cami worse off by a total of
A) $50.
B) $40.
C) $20.
D) $10.
Correct Answer:
Verified
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