Mark,Kerry,Greg,and Carlos each like Chicago Cubs baseball games.The single-game ticket price for an infield box seat is $50.Mark values a ticket at $70,Kerry at $65,Greg at $60,and Carlos at $55.Suppose that if the government taxes tickets at $5 each,the selling price will rise to $55.A consequence of the tax is that
A) consumer surplus shrinks by $50 and tax revenues increase by $20, so there is a deadweight loss of $30.
B) consumer surplus shrinks by $30 and tax revenues increase by $20, so there is a deadweight loss of $10.
C) consumer surplus shrinks by $20 and tax revenues increase by $20, so there is no deadweight loss.
D) consumer surplus shrinks by $50 and tax revenues increase by $20, so there is no deadweight loss.
Correct Answer:
Verified
Q161: Scenario 12-1
Skip places a $20 value on
Q162: Scenario 12-1
Skip places a $20 value on
Q164: Suppose Jack values an ice cream sundae
Q165: Table 12-3 Q167: Table 12-4 Q168: Table 12-3 Q169: Table 12-3 Q170: Mark,Kerry,Greg,and Carlos each like Boston Red Sox Q171: Table 12-4 Q298: Part of the deadweight loss from taxing Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
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