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

question 236

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,

• A) consumer surplus decreases from $150 to $60.
• B) producer surplus decreases from $125 to $45.
• C) the market experiences a deadweight loss of $45.
• D) All of the above are correct.

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