Multiple Choice
Figure 8-11
-Refer to Figure 8-11.Suppose Q1 = 4;Q2 = 7;P1 = $6;P2 = $8;and P3 = $10.Then,when the tax is imposed,
A) the government collects $28 in tax revenue.
B) producer surplus decreases by $13.
C) consumer surplus decreases by $11.
D) the deadweight loss amounts to $9.
Correct Answer:
Verified
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