Figure 8-22 -Refer to Figure 8-22.Suppose the Government Changed the Per-Unit Tax

Multiple Choice

Figure 8-22
-Refer to Figure 8-22.Suppose the government changed the per-unit tax on this good from $3.00 to $1.50.Compared to the original tax rate,this lower tax rate would

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