The Excess Burden of a Tax Is

Multiple Choice

The excess burden of a tax is:

A) the amount by which the price of a good increases.
B) the loss of consumer and producer surplus that is not transferred to the government.
C) the amount by which a person's after-tax income decreases as a result of the new tax.
D) the welfare costs to firms forced to leave the market due to an inward shift of the demand curve.