The Inefficiency of a Sales Tax on a Good Is

Multiple Choice

The inefficiency of a sales tax on a good is ultimately the result of the

A) low tax revenue earned by the government relative to the cost of collection.
B) wedge between what buyers pay for the good and what sellers receive for the good.
C) buyers being unable to avoid paying the tax.
D) sellers being unable to avoid paying the tax.
E) increase in the consumer surplus that is more than offset by the decrease in the producer surplus.