When a nation exports a good, its consumer surplus ________, and its producer surplus ________.
A) increases; increases
B) decreases; decreases
C) increases; decreases
D) decreases; increases
E) does not change; increases
Question 2
The figure above illustrates the gasoline market. There is no external benefit from gasoline. If a tax on gasoline is imposed as shown in the figure, then the total tax revenue earned by the government equals
A) 24 million.
B) 16 million.
C) 8 million.
D) more than 24 million.
E) less than 8 million.
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