Figure 8-19

Multiple Choice

Figure 8-19. The figure represents the relationship between the size of a tax and the tax revenue raised by that tax.

-Refer to Figure 8-19.If the economy is at point B on the curve,then a small decrease in the tax rate will

A) increase the deadweight loss of the tax and increase tax revenue.
B) increase the deadweight loss of the tax and decrease tax revenue.
C) decrease the deadweight loss of the tax and increase tax revenue.
D) decrease the deadweight loss of the tax and decrease tax revenue.