Before a tax is imposed, consumer surplus is represented by areas A, B, and C, and producer surplus by D, E, and F. After a tax, consumer surplus is A and producer surplus is F. What are the changes in surplus areas?

• A. Consumer surplus remains the same, and producer surplus decreases by D+E.
• B. Consumer surplus decreases by A, and producer surplus decreases by F.
• C. Consumer surplus decreases by B+C, and producer surplus decreases by D+E.
• D. Consumer surplus increases by B+C, and producer surplus increases by D+E.

Answer: (C)