Suppose the government is considering a proposal for a new chicken subsidy. Growers of chickens stand to gain approximately $25 million in government funds over the next year if the proposal passes. The money, however, will come from increased taxes on consumers of chicken (a new "chicken tax"). If there are approximately 100 million consumers in the chicken market each year, how much would each be willing to spend, on average, to contest the chicken tax?

Question

Quizplus · Accepted Answer

To find out how much each consumer would be willing to spend to contest the chicken tax, we need to divide the total cost of the subsidy ($25 million) by the number of consumers (100 million). This gives us $0.25 per consumer. Therefore, each consumer would be willing to spend, on average, $0.25 to contest the chicken tax. So the correct answer is D.

Suppose the Government Is Considering a Proposal for a New