In the diagram, D shows the demand curve for Indian tea exports, while S1 is the original supply curve. The Indian government abolishes the tax on tea exports, causing the supply curve to move to S2. Which areas on the diagram show the resulting fall in tax revenue received by the Indian government and the resulting rise in consumer surplus?
- Aloss in tax revenue x; gain in consumer surplus w + y
- Bloss in tax revenue x; gain in consumer surplus y
- Closs in tax revenue x + y; gain in consumer surplus z
- Dloss in tax revenue x + y; gain in consumer surplus z + x