In the diagram, D represents the demand curve for Indian tea exports and S1 shows the original supply curve. The Indian government introduces a tax on tea exports, causing the supply curve to move to S2. Which regions in the diagram show the resulting increase in tax revenue for the Indian government and the resulting fall in producer surplus for its tea producers?
- Again in tax revenue: x; loss in producer surplus: w + y
- Bgain in tax revenue: x + y; loss in producer surplus: y
- Cgain in tax revenue: x; loss in producer surplus: y
- Dgain in tax revenue: x + y; loss in producer surplus: w + y