Figure 8-3
The vertical distance between points A and B represents a tax in the market.
-Refer to Figure 8-3. As a result of the tax, consumer surplus decreases by
A)$130, producer surplus decreases by $170, tax revenue is $240, and deadweight loss is $60.
B)$150, producer surplus decreases by $150, tax revenue is $240, and deadweight loss is $60.
C)$160, producer surplus decreases by $160, tax revenue is $240, and deadweight loss is $80.
D)$240, producer surplus decreases by $240, tax revenue is $400, and deadweight loss is $80.

Question

Figure 8-3
The vertical distance between points A and B represents a tax in the market. 
-Refer to Figure 8-3. As a result of the tax, consumer surplus decreases by
A)$130, producer surplus decreases by $170, tax revenue is $240, and deadweight loss is $60. 
B)$150, producer surplus decreases by $150, tax revenue is $240, and deadweight loss is $60. 
C)$160, producer surplus decreases by $160, tax revenue is $240, and deadweight loss is $80. 
D)$240, producer surplus decreases by $240, tax revenue is $400, and deadweight loss is $80.

Quizplus · Accepted Answer

The Answer of Figure 8-3
The vertical distance between points A and B represents a tax in the market. 
-Refer to Figure 8-3. As a result of the tax, consumer surplus decreases by
A)$130, producer surplus decreases by $170, tax revenue is $240, and deadweight loss is $60. 
B)$150, producer surplus decreases by $150, tax revenue is $240, and deadweight loss is $60. 
C)$160, producer surplus decreases by $160, tax revenue is $240, and deadweight loss is $80. 
D)$240, producer surplus decreases by $240, tax revenue is $400, and deadweight loss is $80.

Figure 8-3 the Vertical Distance Between Points a and B Represents a Represents