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

question 165

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 total surplus in this market when the tax is imposed?

• A)Total surplus increases by $1,500.
• B)Total surplus increases by $3,000.
• C)Total surplus decreases by $1,500.
• D)Total surplus decreases by $,3000.