Question: The vertical distance between points A and B represents a tax in the market. Refer to Figure 8 - 3 . Which of the following

The vertical distance between points A and B represents a tax in the market.
Refer to Figure 8-3. Which of the following statements is correct?
a. The loss of consumer surplus for those buyers of the good who continue to buy it after the tax is imposed is $120.
b. The loss of consumer surplus caused by this tax exceeds the loss of producer surplus caused by this tax.
c. This tax produces $320 in tax revenue for the government.
d. The loss of producer surplus that is associated with some sellers dropping out of the market as a result of the tax is $60.
The vertical distance between points A and B

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