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Consider a market with a demand given by Qd=600-60P and the market supply is Qs = 40P. A tax of $3 per unit is imposed. Which of the following statements is true?
A. After the tax, the equilibrium is pb = 6, ps = 3 and QT = 240
B. After the tax, the equilibrium is pb = 9, ps = 6 and QT = 240
C. The government revenue from the tax is 240×$3=$720
D. The deadweight loss from this tax is zero.
E. None of the above
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