Figure 8-7 the Vertical Distance Between Points a and B Represents a Represents

Multiple Choice

Figure 8-7
The vertical distance between points A and B represents a tax in the market.

-Refer to Figure 8-7.As a result of the tax,consumer surplus decreases by

A) $65, producer surplus decreases by $85, tax revenue is $120, and deadweight loss is $30.
B) $75, producer surplus decreases by $75, tax revenue is $120, and deadweight loss is $30.
C) $80, producer surplus decreases by $80, tax revenue is $120, and deadweight loss is $40.
D) $120, producer surplus decreases by $120, tax revenue is $200, and deadweight loss is $40.