Figure 8-1 -Refer to Figure 8-1. Suppose the Government Imposes a Tax

question 84

Multiple Choice

Figure 8-1
-Refer to Figure 8-1. Suppose the government imposes a tax of P'-P'''. The area measured by K + L represents

• A)tax revenue.
• B)consumer surplus before the tax.
• C)producer surplus after the tax.
• D)total surplus before the tax.