The number of seats in a football stadium is fixed at 70,000.The city decides to impose a tax of $10 per ticket.In response,the team management raises the ticket price from $30 to $40 and still sells all 70,000 tickets.The tax caused a change in the consumer surplus of _____,a change in the producer surplus of _____,and a deadweight loss of _____.

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The consumer surplus decreases by $700,000 due to the increase in ticket prices ($10 increase per ticket for 70,000 tickets). The producer surplus does not change because the team still sells all tickets at the higher price, covering the tax. There is no deadweight loss because all tickets are still sold, indicating no loss in efficiency.

The Number of Seats in a Football Stadium Is Fixed