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Suppose Ron Is Willing to Pay $200 to See a Professional

Question 39

Multiple Choice

Suppose Ron is willing to pay $200 to see a professional basketball game and Felix is willing to pay $150. Assume the normal price of a ticket is $125. The local government decides to impose a $35/ticket surcharge to raise revenue, causing the ticket price to rise to $160.The resulting deadweight loss is


A) $75.
B) $25.
C) $35.
D) $150.

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