Figure $8-8$

Suppose the government imposes a $$10$ per unit tax on a good.

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A graph of price, P$,$ versus quantity, Q$,$ shows a supply curve, S$,$ rising linearly from point $(0,4)$ to $(42,18),$ and a demand curve, D$,$ descending linearly from point $(0,24)$ to $(42,4).$ The curves intersect at $(24,12).3$ points are indicated on the graph. $2$ on the demand curve, at $(12,18)$ and at $(33,8),$ and $1$ on the supply curve at $(12,8).$ Areas A$,$ B$,$ C$,$ D$,$ F$,$ G$,$ H$,$ J$,$ K$,$ L$,$ and M are shown on the graph. All area lie below the Demand curve. Area A$,$ between P $=24$ and P $=18.$ Area B$,$ before Q $=12$ and between P $=18$ and P $=12.$ Area C$,$ after Q $=12$ and between P $=18$ and P $=12.$ Area D$,$ before Q $=12$ and between P $=12$ and P $=8.$ Area F$,$ above the Supply Curve, after Q $=12,$ and between P $=12$ and P $=8.$ Area G$,$ below the Supply curve, after Q $=12,$ and between P $=12$ and P $=8.$ Area H$,$ below the Supply curve, after the equilibrium point, and between Q $=24$ and Q $=33.$ Area J$,$ above the Supply curve, before Q $=12,$ and between P $=8$ and P $=4.$ Area K$,$ below the Supply Curve, before Q $=12,$ and between P $=8$ and P $=0.$ Area L$,$ below the Supply Curve, after Q $=12,$ and between P $=8$ and P $=0.$ Area M$,$ below the supply Curve, after the equilibrium point, and between P $=8$ and P $=0.$

Refer to Figure $8-8.$ One effect of the tax is to

a$.$ reduce consumer surplus from $$180$ to $$72.$

b$.$ reduce producer surplus from $$96$ to $$24.$

c$.$ create a deadweight loss of $$72.$

d$.$ All of the above are correct.