In a Market with an Upward-Sloping Supply Curve and a Downward-Sloping

Multiple Choice

In a market with an upward-sloping supply curve and a downward-sloping demand curve, the effects of an excise tax are as follows except:

A) Consumer surplus will be lower than with no tax.
B) Producer surplus will be lower than with no tax.
C) The impact on the government budget will be positive.
D) The tax will generally lead to a deadweight gain.