Leonard, Sheldon, Raj, and Penny Each Like to Attend Comic-Book

Multiple Choice

Leonard, Sheldon, Raj, and Penny each like to attend comic-book conventions. The price of a ticket to a convention is $50. Leonard values a ticket at $70, Sheldon at $65, Raj at $60, and Penny at $55. Suppose that if the government taxes tickets at $5 each, the price will rise to $55. A consequence of the tax is that consumer surplus shrinks by

A) $50 and tax revenues increase by $20, so there is a deadweight loss of $30.
B) $30 and tax revenues increase by $20, so there is a deadweight loss of $10.
C) $20 and tax revenues increase by $20, so there is no deadweight loss.
D) $50 and tax revenues increase by $20, so there is no deadweight loss.