Figure 8-1 -Refer to Figure 8-1. Suppose the Government Imposes a Tax

Multiple Choice

Figure 8-1
-Refer to Figure 8-1. Suppose the government imposes a tax of P' - P'''. The area measured by M represents

A) consumer surplus after the tax.
B) consumer surplus before the tax.
C) producer surplus after the tax.
D) producer surplus before the tax.