Figure 8-8
Suppose the government imposes a $10 per unit tax on a good.
-Refer to Figure 8-8.One effect of the tax is to
A)reduce consumer surplus from $180 to $72.
B)reduce producer surplus from $96 to $24.
C)create a deadweight loss of $72.
D)All of the above are correct.

Question

Figure 8-8
Suppose the government imposes a $10 per unit tax on a good. 
-Refer to Figure 8-8.One effect of the tax is to
A)reduce consumer surplus from $180 to $72. 
B)reduce producer surplus from $96 to $24. 
C)create a deadweight loss of $72. 
D)All of the above are correct.

Quizplus · Accepted Answer

The Answer of Figure 8-8
Suppose the government imposes a $10 per unit tax on a good. 
-Refer to Figure 8-8.One effect of the tax is to
A)reduce consumer surplus from $180 to $72. 
B)reduce producer surplus from $96 to $24. 
C)create a deadweight loss of $72. 
D)All of the above are correct.

Figure 8-8 Suppose the Government Imposes a $10 Per Unit Tax on Tax