Figure 8-3 the Vertical Distance Between Points a and B Represents a Represents

Multiple Choice

Figure 8-3
The vertical distance between points A and B represents a tax in the market.
-Refer to Figure 8-3. Which of the following statements is correct?

A) The loss of producer surplus that is associated with some sellers dropping out of the market as a result of the tax is $60.
B) The loss of consumer surplus for those buyers of the good who continue to buy it after the tax is imposed is $120.
C) The loss of consumer surplus caused by this tax exceeds the loss of producer surplus caused by this tax.
D) This tax produces $320 in tax revenue for the government.