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.


b

Economics

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Assume that there is a supply and demand market for non-preferred workers. If prejudice against these workers among employers increases, then there will be a(n):

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Economics