Figure 9-16

Multiple Choice

Figure 9-16.The figure below illustrates a tariff.On the graph,Q represents quantity and P represents price.
-Refer to Figure 9-16.The tariff

A) decreases producer surplus by the area C,decreases consumer surplus by the area C + D + E,and decreases total surplus by the area D + F.
B) increases producer surplus by the area C,decreases consumer surplus by the area C + D + E + F,and decreases total surplus by the area D + F.
C) creates government revenue represented by the area B + E and decreases total surplus by the area D + E + F.
D) increases producer surplus by the area C + G and creates government revenue represented by the area D + E + F.