(Figure: A Market with a Tax) Use Figure: A Market with a Tax.Before the tax,producer surplus is equal to the areas:

A) A + B + C + D.
B) D + E + F + G.
C) A + B + C + D + E + F.
D) A + B + C.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service and the actual amount they receive, due to higher market prices.

Tax

A compulsory financial charge or levy imposed by a governmental organization in order to fund various public expenditures.