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(Solved): Scenario 13-2 Suppose Ren and Regina receive great satisfaction from their consumption of cheesecak ...



Scenario 13-2 Suppose Ren and Regina receive great satisfaction from their consumption of cheesecake. Regina would be willing to purchase only one slice and would pay up to $8 for it. Ren would be willing to pay $11 for his first slice, $9 for his second slice, and $5 for his third slice. The current market price is $5 per slice. Refer to Scenario 13-2. Assume that the government places a $4 tax on each slice of cheesecake and that the new equilibrium price is $9. How much tax revenue will be generated from sales to Regina and Ren? a. $4 b. zero c. $8 d. $12



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