Athos, Porthos,and Aramis each like to take fencing lessons. The price of a fencing lesson is $11. Athos values a lesson at $16, Porthos at $14, and Aramis at $12. Suppose that if the government taxes fencing lessons at $2 each, the price will rise to $13. A consequence of the tax is that consumer surplus shrinks by
A)$4 and tax revenues increase by $6, so there is a deadweight loss of $2.
B)$6 and tax revenues increase by $6, so there is no deadweight loss.
C)$5 and tax revenues increase by $6, so there is no deadweight loss.
D)$5 and tax revenues increase by $4, so there is a deadweight loss of $1.

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The Answer of Athos, Porthos,and Aramis each like to take fencing lessons. The price of a fencing lesson is $11. Athos values a lesson at $16, Porthos at $14, and Aramis at $12. Suppose that if the government taxes fencing lessons at $2 each, the price will rise to $13. A consequence of the tax is that consumer surplus shrinks by
A)$4 and tax revenues increase by $6, so there is a deadweight loss of $2.
B)$6 and tax revenues increase by $6, so there is no deadweight loss.
C)$5 and tax revenues increase by $6, so there is no deadweight loss.
D)$5 and tax revenues increase by $4, so there is a deadweight loss of $1.

Athos, Porthos,and Aramis Each Like to Take Fencing Lessons