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Exhibit 7-9 -Exhibit 7-9 Shows the Effect of a Tax on a Tax

Question 130

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Exhibit 7-9 Exhibit 7-9 -Exhibit 7-9 shows the effect of a tax on a market. Which of the following is true? A) An increase in consumer surplus by area C and a decrease in producer surplus by area D B) A decrease in consumer surplus by area E and an increase in producer surplus by area F C) A decrease in consumer surplus by the total area of C and E, and a decrease in producer surplus by the total area of D and F D) A decrease in consumer surplus by area B and an increase in producer surplus by area A E) A decrease in consumer surplus by area A and a decrease in producer surplus by area B
-Exhibit 7-9 shows the effect of a tax on a market. Which of the following is true?


A) An increase in consumer surplus by area C and a decrease in producer surplus by area D
B) A decrease in consumer surplus by area E and an increase in producer surplus by area F
C) A decrease in consumer surplus by the total area of C and E, and a decrease in producer surplus by the total area of D and F
D) A decrease in consumer surplus by area B and an increase in producer surplus by area A
E) A decrease in consumer surplus by area A and a decrease in producer surplus by area B

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