For a Good That Is Taxed, the Area on the Relevant

Multiple Choice

For a good that is taxed, the area on the relevant supply-and-demand graph that represents government's tax revenue is

A) smaller than the area that represents the loss of consumer surplus and producer surplus caused by the tax.
B) bounded by the supply curve, the demand curve, the effective price paid by buyers, and the effective price received by sellers.
C) a right triangle.
D) a triangle, but not necessarily a right triangle.