Multiple Choice
Figure 8-3
The vertical distance between points A and B represents a tax in the market.
-Refer to Figure 8-3. As a result of the tax,
A) consumer surplus decreases from $200 to $80.
B) producer surplus decreases from $200 to $145.
C) the market experiences a deadweight loss of $80.
D) total surplus increases from $180 to $200.
Correct Answer:

Verified
Correct Answer:
Verified
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