Scenario 12-3 Suppose That Bob Places a Value of $10 on a on a Movie

question 117

Multiple Choice

Scenario 12-3
Suppose that Bob places a value of $10 on a movie ticket and that Lisa places a value of $7 on a movie ticket. In addition, suppose the price of a movie ticket is $5.
-Refer to Scenario 12-3.Suppose the government levies a tax of $3 on a movie ticket and that,as a result,the price of a movie ticket increases to $8.What is total consumer surplus after the tax is imposed?

• A) $0
• B) $1
• C) $2
• D) $3

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