Suppose that demand for pizza is 2.0 (Ed= 2.0) and the supply of pizza is 0.8 (Es= 0.8). If the government imposes a $4 per pizza excisetaxon the production of pizza, then the price that consumers pay will ______ and at the after-tax quantity, Qtax, ______

Group of answer choices

increase by more $4; a deadweight loss results because at Qtaxmarginal benefit is less than marginal cost, i.e., MB(Qtax) < MC(Qtax).

increase by more than $2 but less than $4; a deadweight loss results because at Qtaxmarginal benefit is greater than marginal cost, i.e., MB(Qtax) > MC(Qtax).

decrease by more than $2 but less than $4; a deadweight loss results because at Qtaxmarginal benefit is less than marginal cost, i.e., MB(Qtax) < MC(Qtax).

decrease by less than $2; a deadweight loss results becauseat Qtaxmarginal benefit is greater than marginal cost, i.e., MB(Qtax) > MC(Qtax).

increase by less than $2; a deadweight loss results because at Qtaxmarginal benefit is greater than marginal cost, i.e., MB(Qtax) > MC(Qtax).

increase by lessthan $2; a deadweight loss results because at Qtaxmarginal benefit is less than marginal cost, i.e., MB(Qtax) < MC(Qtax).