Figure 8-10 -Refer to Figure 8-10. Suppose the Government Imposes a Tax

Multiple Choice

Figure 8-10
-Refer to Figure 8-10. Suppose the government imposes a tax that reduces the quantity sold in the market after the tax to Q2. With the tax, the total surplus is

A) [x (P0-P5) x Q5] + [x (P5-0) x Q5].
B) [x (P0-P2) x Q2] +[(P2-P8) x Q2] + [x (P8-0) x Q2].
C) (P2-P8) x Q2.
D) x (P2-P8) x (Q5-Q2) .