Figure 9.6
-Refer to Figure 9.6. Including the consumers' expected tax burden, the total change in welfare from this policy is
A) -$6000.
B) -$5250.
C) -$4500.
D) $4500.
E) $5250.

Question

Figure 9.6
-Refer to Figure 9.6. Including the consumers' expected tax burden, the total change in welfare from this policy is
A) -$6000. 
B) -$5250. 
C) -$4500. 
D) $4500. 
E) $5250.

Quizplus · Accepted Answer

The total change in welfare from the policy, including the consumers' expected tax burden, is calculated as the sum of the changes in consumer surplus, producer surplus, and tax revenue. The negative value indicates a welfare loss.

Figure 9.6 -Refer to Figure 9.6. Including the Consumers' Expected Tax Burden