Aiden gi,es piano lessons. He has an opportunity costof $50 per lesson and charges $60. He has two students: Brandon, who has a willingness to pay of $70,and Chloe, who has a wi llingness to pay of $90. Whenthe government pu ts a $20 tax on piano lessons andAiden raises his price to $80, the deadweight loss is_________________and the tax revenue is__________a. $10, $20b, $10, $40C. $20, $20d, $20, $40
Aiden gi,es piano lessons. He has an opportunity costof $50 per lesson and charges $60. He has two students: Brandon, who has a willingness to pay of $70,and Chloe, who has a wi llingness to pay of $90. Whenthe government pu ts a $20 tax on piano lessons andAiden raises his price to $80, the deadweight loss is_________________and the tax revenue is__________a. $10, $20b, $10, $40C. $20, $20d, $20, $40
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Aiden gi,es piano lessons. He has an
of $50 per lesson and charges $60. He has two students: Brandon, who has a willingness to pay of $70,
and Chloe, who has a wi llingness to pay of $90. When
the government pu ts a $20 tax on piano lessons and
Aiden raises his
_________________and the tax revenue is__________
a. $10, $20
b, $10, $40
C. $20, $20
d, $20, $40
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