Figure 8-3 the Vertical Distance Between Points a and B Represents a Represents

question 122

Multiple Choice

Figure 8-3
The vertical distance between points A and B represents a tax in the market.
-Refer to Figure 8-3. As a result of the tax,

• A)consumer surplus decreases from $200 to $80.
• B)producer surplus decreases from $200 to $145.
• C)the market experiences a deadweight loss of $80.
• D)total surplus increases from $180 to $200.

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