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

question 89

Multiple Choice

Figure 8-7
The vertical distance between points A and B represents a tax in the market.
-Refer to Figure 8-7.Which of the following statements is correct?

• A)Total surplus before the tax is imposed is $500.
• B)After the tax is imposed,consumer surplus is 45 percent of its pre-tax value.
• C)After the tax is imposed,producer surplus is 45 percent of its pre-tax value.
• D)All of the above are correct.