Figure 8-6 the Vertical Distance Between Points a and B Represents a Represents

question 210

Multiple Choice

Figure 8-6
The vertical distance between points A and B represents a tax in the market.
-Refer to Figure 8-6.What happens to producer surplus when the tax is imposed in this market?

• A)Producer surplus falls by $600.
• B)Producer surplus falls by $900.
• C)Producer surplus falls by $1,800.
• D)Producer surplus falls by $2,100.

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