Figure 8-7 the Vertical Distance Between Points a and B Represents a Represents

question 168

Multiple Choice

Figure 8-7
The vertical distance between points A and B represents a tax in the market.
-Refer to Figure 8-7.As a result of the tax,consumer surplus decreases by

• A)$130,producer surplus decreases by $170,tax revenue is $240,and deadweight loss is $60.
• B)$150,producer surplus decreases by $150,tax revenue is $240,and deadweight loss is $60.
• C)$160,producer surplus decreases by $160,tax revenue is $240,and deadweight loss is $80.
• D)$240,producer surplus decreases by $240,tax revenue is $400,and deadweight loss is $80.

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