Figure 8-7 the Graph Below Represents a $10 Per Unit

question 41

Multiple Choice

Figure 8-7 The graph below represents a $10 per unit tax on a good. On the graph, Q represents quantity and P represents price.

-Refer to Figure 8-7.One effect of the tax is to

• A)reduce consumer surplus by $36.
• B)reduce producer surplus by $24.
• C)create a deadweight loss of $20.
• D)All of the above are correct.

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