Figure 8-7 The vertical distance between points A and B represents the original tax. A graph of price, P, versus quantity, Q, shows a supply curve, S, rising linearly from point (0, 2) to (4, 10), and a demand curve, D, descending linearly from (0, 12) to (4, 0). The curves intersect at (2, 6). The labeled points on the demand curve are as follows. Point F, (0.5, 10.5). Point A, (1, 9). Point C, (1.5, 7.5). The labeled points on the supply curve are as follows. Point D, (1.5, 5). Point B, (1, 4). Point (0.5, 3). Refer to Figure 8-7. If the government changed the per-unit tax from $5.00 to $2.50, then the price paid by buyers would be $7.50, the price received by sellers would be $5, and the quantity sold in the market would be 1.5 units. Compared to the original tax rate, this lower tax rate would a. increase government revenue and decrease the deadweight loss from the tax. b. decrease government revenue and increase the deadweight loss from the tax. c. decrease government revenue and decrease the deadweight loss from the tax. d. increase government revenue and increase the deadweight loss from the tax