Zoe,Chloe,and Brody Each Like to Read Novels

question 260

Multiple Choice

Zoe,Chloe,and Brody each like to read novels.The current bestseller costs $11.Zoe values it at $16,Chloe at $14,and Brody at $12.Suppose that if the government taxes books at $2 each,the selling price will rise to $13.A consequence of the tax is that

• A) consumer surplus shrinks by $4 and tax revenues increase by $6, so there is a deadweight loss of $2.
• B) consumer surplus shrinks by $6 and tax revenues increase by $6, so there is no deadweight loss.
• C) consumer surplus shrinks by $5 and tax revenues increase by $6, so there is no deadweight loss.
• D) consumer surplus shrinks by $5 and tax revenues increase by $4, so there is a deadweight loss of $1.

---

Definitions:

Secondary Sources

Publications or materials that interpret, analyze, or summarize information from primary sources.

Primary Sources

Original documents or evidence directly related to a topic, used in research to provide direct or firsthand evidence.

Roman Tradition

Cultural and legal practices originating from ancient Rome that have influenced Western legal systems.

Legal Encyclopedia

A comprehensive reference work that provides summaries on a wide range of legal topics, laws, and cases.