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-(Figure: The Market for Blue Jeans)Use Figure: The Market for Blue Jeans.The government recently levied a $10 tax on the producers of blue jeans.What area or areas in the graph identify consumer and producer surplus after the tax was levied?

Question

Use the following to answer question: 
-(Figure: The Market for Blue Jeans)Use Figure: The Market for Blue Jeans.The government recently levied a $10 tax on the producers of blue jeans.What area or areas in the graph identify consumer and producer surplus after the tax was levied?

Quizplus · Accepted Answer

After the tax is levied, consumer surplus is represented by area a, and producer surplus is represented by area f. Areas b, c, d, and e represent the tax burden and the loss of surplus due to the tax, not the surplus after the tax.

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