Exhibit 7-8 -Refer to the Exhibit 7-8. Suppose That the Government Imposes

Multiple Choice

Exhibit 7-8
-Refer to the Exhibit 7-8. Suppose that the government imposes a sales tax on a good such that S₁ represents the supply curve without the tax and S₂ represents the supply curve with the tax. The deadweight loss as a result of the tax is the combined area of

A) H and I.
B) A and B.
C) C, G, H, and I.
D) C and I less the combined area of E and A.
E) A, B, E, and F less the combined area of C and G.