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 the loss of consumer surplus due to the tax?

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 the loss of consumer surplus due to the tax?

Quizplus · Accepted Answer

The loss of consumer surplus is represented by area b+c, which is the difference between the original consumer surplus (triangle a+b+c) and the new consumer surplus after the tax (triangle a).

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