If Uber Is Required to Start Paying the Value-Added Tax

Multiple Choice

If Uber is required to start paying the value-added tax (VAT) in Great Britain, this will have the potential to raise the equilibrium price in this market and, therefore, decrease efficiency.This would have a tendency to

A) decrease producer surplus and decrease deadweight loss.
B) decrease consumer surplus and increase deadweight loss.
C) increase consumer surplus and increase producer surplus.
D) maximize consumer surplus and minimize producer surplus.