Refer to the graph shown. Initially, the market is in equilibrium with price equal to $25 and quantity equal to 100. As a result of a per-unit tax imposed by the government, the supply curve shifts from S0 to S1. The effect of the tax is to: 
A) give government tax revenues of $100.
B) give government tax revenues of $400.
C) reduce producer surplus by $375.
D) reduce producer surplus by $400.
Correct Answer:
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