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
Correct Answer:
Verified
Correct Answer:
Verified
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