Leonard, Sheldon, Raj, and Penny Each Like Science Fiction Moves

question 452

Multiple Choice

Leonard, Sheldon, Raj, and Penny each like science fiction moves. The price of a special boxed set of Star Trek DVDs is $50. Leonard values the set of movies at $70, Sheldon at $65, Raj at $60, and Penny at $55. Suppose that if the government taxes DVDs at $10 each, the price rises to $60. A consequence of the tax is that consumer surplus shrinks by

• A)$50 and tax revenues increase by $30, so there is a deadweight loss of $20.
• B)$35 and tax revenues increase by $30, so there is a deadweight loss of $5.
• C)$20 and tax revenues increase by $20, so there is no deadweight loss.
• D)$15 and tax revenues increase by $20, so there is no deadweight loss.

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Definitions:

Calcium Depletion

A condition where the body has insufficient levels of calcium, which can lead to weakened bones and other health issues.

Bone Matrix

The intercellular substance of bone tissue, consisting of collagen fibers and ground substance, that gives the bone its strength and rigidity.

Osteoporosis

A condition characterized by weakened bones, increasing the risk of fractures.

Fractures

Breaks in bones, which can vary in severity from small cracks to complete breaks.