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.

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The Answer of 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.

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