Refer to Figure 8-2. The loss of producer surplus associated with some sellers dropping out of the market as a result of the tax is

A) $6.
B) $4.
C) $8.
D) $12.

Producer Surplus

The gap between the minimum amount that sellers are prepared to accept for a product or service and the higher price they actually get.

Consumer Surplus

The deviation between what consumers intend and are able to spend on a good or service compared to their final payment.

Tax

A financial charge or levy imposed by a government on individuals or entities to fund public expenditure, creating government revenue.