The state of Oregon's wine industry specializes in the production of Pinot Noir wine, a type of red wine. Oregon's Pinot Noir is very similar to wines made in Santa Barbara and the Burgundy region of France. Oregon's Pinot Noir is also known to pair well with lamb, that is, many people choose to drink Pinot Noir while eating lamb. For many years, states levy a special sales tax on wine often called a "sin tax". The reasoning behind these special sales taxes is that wine consumption can lead to particular social costs such as drunk driving, violence, etc.

However, many medical studies have demonstrated that moderate consumption of red wine can lower the risks for many diseases such as coronary heart disease. Thus, there are social benefits as well.

Suppose that states, in recognition of some of the benefits to wine consumption, decide to decrease the sales tax on Oregon Pinot Noir. What effect will this have on consumer surplus, producer surplus and deadweight loss.
A. Consumer surplus increases, producer surplus increases, the deadweight loss decreases.
B. Consumer surplus decreases, producer surplus decreases, the deadweight loss decreases.
C. Consumer surplus decreases, producer surplus increases, the deadweight loss is unchanged.
D. Consumer surplus increases, producer surplus increases, the deadweight loss increases.