Zoe,Chloe,and Brody each like to read novels.The current mystery thriller costs 10 dinars.Zoe values it at 15 dinars,Chloe at 13 dinars,and Brody at 11 dinars.Suppose that if the government taxes books at 0.50dinarseach,the selling price rises to 10.50 dinars.A consequence of the tax is that
A) consumer surplus shrinks by 1.50 and tax revenues increase by 1.50,so there is no deadweight loss.
B) consumer surplus shrinks by 9.00 and tax revenues increase by 1.50,so there is a deadweight loss of 7.50.
C) consumer surplus shrinks by 7.50 and tax revenues increase by 7.50,so there is no deadweight loss.
D) consumer surplus shrinks by 7.50 and tax revenues increase by 1.50,so there is a deadweight loss of 6.
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