Exhibit 7-9 -Exhibit 7-9 Shows the Effect of a Tax on a Tax

Multiple Choice

Exhibit 7-9
-Exhibit 7-9 shows the effect of a tax on a market. Which of the following is true?

A) An increase in consumer surplus by area C and a decrease in producer surplus by area D
B) A decrease in consumer surplus by area E and an increase in producer surplus by area F
C) A decrease in consumer surplus by the total area of C and E, and a decrease in producer surplus by the total area of D and F
D) A decrease in consumer surplus by area B and an increase in producer surplus by area A
E) A decrease in consumer surplus by area A and a decrease in producer surplus by area B