Suppose the Government Is Considering a Proposal for a New

Multiple Choice

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?

A) $25 million
B) $100
C) $25
D) $0.25