Figure 8-8 Suppose the Government Imposes a $10 Per Unit Tax on Tax

Multiple Choice

Figure 8-8
Suppose the government imposes a $10 per unit tax on a good.
-Refer to Figure 8-8.One effect of the tax is to

A) reduce consumer surplus by $108.
B) reduce producer surplus by $72.
C) create a deadweight loss of $60.
D) All of the above are correct.