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 from $3.00 to $4.50.Compared to the original tax rate,this higher 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.