A tax of $0.25 is imposed on each bag of potato chips that is sold. The tax decreases producer surplus by $600 per day, generates tax revenue of $1,220 per day, and decreases the equilibrium quantity of potato chips by 120 bags per day. The tax
A)decreases consumer surplus by $645 per day.
B)decreases the equilibrium quantity from 6,000 bags per day to 5,880 bags per day.
C)decreases total surplus from $3,000 to $1,800 per day.
D)creates a deadweight loss of $15 per day.

Question

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The Answer of A tax of $0.25 is imposed on each bag of potato chips that is sold. The tax decreases producer surplus by $600 per day, generates tax revenue of $1,220 per day, and decreases the equilibrium quantity of potato chips by 120 bags per day. The tax
A)decreases consumer surplus by $645 per day.
B)decreases the equilibrium quantity from 6,000 bags per day to 5,880 bags per day.
C)decreases total surplus from $3,000 to $1,800 per day.
D)creates a deadweight loss of $15 per day.

A Tax of $0