Question
Suppose Wing needs a baby sitter so that he can travel to his sister's wedding. Wing values baby sitting for the weekend at $350. Mary
Suppose Wing needs a baby sitter so that he can travel to his sister's wedding. Wing values baby sitting for the weekend at $350. Mary is willing to baby sit for Wing so long as she receives at least $300. Wing and Mary agree on a price of $325. Suppose the government imposes a tax of $60 on baby sitting. The tax has made Wing and Mary worse off by a total of
a) 25
b) 0
c) 50
d) 60
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Using Econometrics A Practical Guide
Authors: A. H. Studenmund
7th edition
013418274X, 978-0134182742
