When a nation exports a good, its consumer surplus ________, and ...

[drink]

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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Answer to Question 1

D

Answer to Question 2

C