Figure 4-5 Figure 4-5 Represents the Market for Gasoline

Multiple Choice

Figure 4-5 Figure 4-5 represents the market for gasoline before and after a per-gallon tax. What does the triangular area ABC represent?

A) the amount of revenue raised due to imposing the tax
B) the loss in consumer surplus due to imposing the tax
C) the loss in producer surplus due to imposing the tax
D) the deadweight loss (or excess burden) caused by the tax