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wariber [46]
2 years ago
15

The number of seats at hard rock stadium is fixed at 70,000. Suppose the team raises the price of a ticket from $30, at which 70

,000 are sold, to $40, and it sells 60,000 tickets. The price change would cause a change in consumer surplus of?
Mathematics
1 answer:
spin [16.1K]2 years ago
5 0

Answer:

<em>The correct answer is "(B) -$700,000; $0; $0".</em>

Step-by-step explanation:

<em>The tax caused a change in the consumer surplus of $-700000, a change in the producer surplus of $0, and a deadweight loss of $0.</em>

<em></em>

<em>The change in consumer surplus is due to the $ 10 increase lost by consumers (10 x 70000 = 70000).</em>

<em></em>

<em>The rest does not vary because management decided to raise the price of the product, instead of bearing the tax.</em>

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