Zoe,Chloe,and Brody each like to read novels.The current bestseller costs $11.Zoe values it at $16,Chloe at $14,and Brody at $12.Suppose that if the government taxes books at $2 each,the selling price will rise to $13.A consequence of the tax is that
A) consumer surplus shrinks by $4 and tax revenues increase by $6, so there is a deadweight loss of $2.
B) consumer surplus shrinks by $6 and tax revenues increase by $6, so there is no deadweight loss.
C) consumer surplus shrinks by $5 and tax revenues increase by $6, so there is no deadweight loss.
D) consumer surplus shrinks by $5 and tax revenues increase by $4, so there is a deadweight loss of $1.

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The Answer of Zoe,Chloe,and Brody each like to read novels.The current bestseller costs $11.Zoe values it at $16,Chloe at $14,and Brody at $12.Suppose that if the government taxes books at $2 each,the selling price will rise to $13.A consequence of the tax is that
A) consumer surplus shrinks by $4 and tax revenues increase by $6, so there is a deadweight loss of $2.
B) consumer surplus shrinks by $6 and tax revenues increase by $6, so there is no deadweight loss.
C) consumer surplus shrinks by $5 and tax revenues increase by $6, so there is no deadweight loss.
D) consumer surplus shrinks by $5 and tax revenues increase by $4, so there is a deadweight loss of $1.

Zoe,Chloe,and Brody Each Like to Read Novels