The diagram illustrates what happens when a government abolishes the tariff on rice imports into its country. What effect would this tariff removal have on consumer surplus and government revenue?
- Aconsumer surplus increases by VUT; government revenue decreases by WVTX
- Bconsumer surplus increases by VUT; government revenue decreases by $WVQ_3Q_2$
- Cconsumer surplus increases by $P_1VUP_2$; government revenue decreases by WVTX
- Dconsumer surplus increases by $P_1VUP_2$; government revenue decreases by $WVQ_3Q_2$