​When taxes are levied on transactions,irrespective of the party they are levied on,

A) ​The government can absorb all the consumer surplus from the transactions as revenue
B) The government can absorb all the producer surplus from the transactions as revenue
C) The government can absorb some of the surplus,but also creates a social loss since some of the wealth creating transactions are discouraged
D) ​The government can absorb all of the surplus (producer and consumer)

When taxes are levied on transactions, it is likely that some of the economic surplus will be absorbed by the government as revenue. However, taxes also create a social loss as some transactions that would have been beneficial for both parties are now discouraged due to the increased cost. Therefore, option C is the correct answer as it acknowledges both the revenue aspect of taxation and the social loss associated with it. However, options A and D are incorrect as they assume that all surplus is absorbed by the government, which is not always the case. Option B is also incorrect as it assumes that only the producer surplus is absorbed by the government, which is not true in reality.