Question

Suppose rebecca needs a dog sitter so that she can travel to her sister's wedding. rebecca values dog sitting for the weekend at $200. susan is willing to dog sit for rebecca so long as she receives at least $175. rebecca and susan agree on a price of $185. suppose the government imposes a tax of $30 on dog sitting. the tax has made rebecca and susan worse off by a total of

Answer 1

The tax has made rebecca and susan worse off by a total of 25 dollars ($25). The tax made it worse because the salary of susan may reduce due to the government imposes tax on dog sitting. They will worse off by a total of 25 dollars. Maybe we can conclude $200 - $175 = $25