Suppose That the Equilibrium Quantity in the Market for Widgets

Multiple Choice

Suppose that the equilibrium quantity in the market for widgets has been 300 per month.Then a tax of $5 per widget is imposed.The price paid by buyers increases by $2 and the after-tax price received by sellers falls by $3.The government is able to raise 1000 per month in revenue from the tax.What is the deadweight loss from the tax

A) $50
B) $100
C) $250
D) $500