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 $200 to $80.
B)producer surplus decreases from $200 to $145.
C)the market experiences a deadweight loss of $80.
D)All of the above are correct.

Question

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 $200 to $80. 
B)producer surplus decreases from $200 to $145. 
C)the market experiences a deadweight loss of $80. 
D)All of the above are correct.

Quizplus · Accepted Answer

The Answer of 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 $200 to $80. 
B)producer surplus decreases from $200 to $145. 
C)the market experiences a deadweight loss of $80. 
D)All of the above are correct.

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