Question

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 $175. Ashley and Cami agree on a price of $185. Suppose the government imposes a tax of $30 on dog sitting. The tax has made Ashley and Cami worse off by a total of ___________.

Answer 1

Answer:

$30

Explanation:

Data provided in the question

Dog sitting value for the weekend = $200

Minimum amount received = $175

Agreed price = $175

Tax imposed by the government = $30

So by considering the above information, the total amount worse off is equal to the amount imposed by the government i.e tax value $30

As the question is asked indirectly about the worse off amount so it would be a tax amount i.e imposed by the government