A Tax of $0

Multiple Choice

A tax of $0.25 is imposed on each bag of potato chips that is sold. The tax decreases producer surplus by $600 per day, generates tax revenue of $1,220 per day, and decreases the equilibrium quantity of potato chips by 120 bags per day. The tax

A) decreases consumer surplus by $645 per day.
B) decreases the equilibrium quantity from 6,000 bags per day to 5,880 bags per day.
C) decreases total surplus from $3,000 to $1,800 per day.
D) creates a deadweight loss of $15 per day.