If the Government Imposes a Sales Tax on a Good

Multiple Choice

If the government imposes a sales tax on a good, then the deadweight loss of the tax is the

A) reduction in the sum of the consumer surplus and producer surplus.
B) gain in the sum of the consumer surplus and producer surplus.
C) tax revenue.
D) reduction in the sum of the consumer surplus and producer surplus, and the gain in the tax revenue.
E) gain in the sum of the consumer surplus and producer surplus plus the tax revenue.