Betty gives piano lessons. She has an opportunity cost of $50 per lesson and charges $60. She
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Betty gives piano lessons. She has an opportunity cost of $50 per lesson and charges $60. She has two students: Archie, who has a willingness to pay of $70, and Veronica, who has a willingness to pay of $90. When the government puts a $20 tax on piano lessons and Betty raises her price to $80, the deadweight loss is _________ and the tax revenue is _________.
a. $10; $20
b. $10; $40
c. $20; $20
d. $20; $40
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