When a tax on a product is removed, supply rises from SS to S1S1 as shown in the diagram. What effect does this change have on government tax revenue and consumer expenditure?
- Atax revenue reduce by $80; consumer expenditure increase by $280
- Btax revenue reduce by $80; consumer expenditure increase by $480
- Ctax revenue reduce by $200; consumer expenditure increase by $280
- Dtax revenue reduce by $200; consumer expenditure increase by $480