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Refer to the Graph Shown

question 65

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Refer to the graph shown. Assume that the market is initially in equilibrium at a price of $10 and a quantity of 500 units. If the government imposes a $4 per-unit tax on this product, producer surplus will fall from: Refer to the graph shown. Assume that the market is initially in equilibrium at a price of $10 and a quantity of 500 units. If the government imposes a $4 per-unit tax on this product, producer surplus will fall from:   A)  2,500 to 1,600. B)  5,000 to 3,200. C)  3,200 to 1,600. D)  5,000 to 2,500.


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