Multiple Choice
Suppose Max values a concert ticket at $45. Charles values the same concert ticket at $40. The pre-tax price of a concert ticket is $30. The government imposes a tax of $5 on each concert ticket, and the price rises to $35. The deadweight loss from the tax is
A) $15.
B) $10.
C) $5.
D) $0.
Correct Answer:
Verified
Correct Answer:
Verified
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