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

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) [1/2 x (P0-P5) x Q5] + [1/2 x (P5-0) x Q5].
B) [1/2 x (P0-P2) x Q2] +[(P2-P8) x Q2] + [1/2 x (P8-0) x Q2].
C) (P2-P8) x Q2.
D) 1/2 x (P2-P8) x (Q5-Q2) .