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

question 76

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.

---

Definitions:

Elastic Fibers

Components of connective tissue that provide elasticity and flexibility, composed primarily of the protein elastin.

Ultraviolet Light

A form of electromagnetic radiation with a wavelength shorter than that of visible light but longer than X-rays, capable of causing chemical reactions and physical burns.

Vitamin D

A group of fat-soluble secosteroids responsible for increasing intestinal absorption of calcium, magnesium, and phosphate.

Marine Mammals

A diverse group of roughly 120 species of mammals that are primarily ocean-dwelling or depend significantly on aquatic ecosystems for their survival.