Figure 8-5 Suppose That the Government Imposes a Tax of P3 -

Multiple Choice

Figure 8-5
Suppose that the government imposes a tax of P3 - P1.
-Refer to Figure 8-5.The benefit to the government is measured by

A) tax revenue and is represented by area A+B.
B) tax revenue and is represented by area B+D.
C) the net gain in total surplus and is represented by area B+D.
D) the net gain in total surplus and is represented by area C+H.