Refer to Figure 8-13. If you were a policymaker choosing between a $3, $6, or $9 tax, which would you choose and why?

If the objective is to maximize tax revenues, the $6 tax generates the highest tax revenues of the three choices. If the objective is to minimize deadweight loss, the $3 tax generates the lowest deadweight loss of the three choices. Many people would choose the "medium" level tax, which in this case would be the $6 tax, because it raises the most revenues, while the deadweight loss that it creates is smaller than the "large" tax (although bigger than the "small" tax).