Question: The vertical distance between points A and B represents a tax in the market. Price 22 20 + 18 + Supply 16 + - -

 The vertical distance between points A and B represents a tax
in the market. Price 22 20 + 18 + Supply 16 +

The vertical distance between points A and B represents a tax in the market. Price 22 20 + 18 + Supply 16 + - - 14 12 + - - - 10 8 B 4 Demand 2 + 100 200 300 400 500 600 700 800 900 1000 Quantity Refer to Figure 8-6. What happens to consumer surplus when the tax is imposed in this market? O A. Consumer surplus falls by $3,600. O B. Consumer surplus falls by $2, 700. O C. Consumer surplus falls by $1,800. O D. Consumer surplus falls by $900

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