In the diagram, D shows a country’s demand curve for an imported good. The government of the country introduces an import tariff equal to PWPC on this good. Which areas show the resulting fall in consumer surplus and the resulting rise in government revenue?
- Aloss in consumer surplus: x + y; gain in government revenue: x
- Bloss in consumer surplus: x + y; gain in government revenue: z
- Closs in consumer surplus: y; gain in government revenue: x
- Dloss in consumer surplus: y; gain in government revenue: z