In the diagram above,D represents the original demand curve,S represents the original supply curve,and S' represents the supply curve once a per-unit tax is imposed.
-Refer to the diagram above.Consumer surplus after the tax is imposed is represented by the area
A) MAC.
B) MEI.
C) MAHI.
D) EAHI.
E) EACI.

Question

In the diagram above,D represents the original demand curve,S represents the original supply curve,and S' represents the supply curve once a per-unit tax is imposed.
-Refer to the diagram above.Consumer surplus after the tax is imposed is represented by the area
A) MAC. 
B) MEI. 
C) MAHI. 
D) EAHI. 
E) EACI.

Quizplus · Accepted Answer

Consumer surplus after the tax is imposed is represented by the area MEI, which is the area above the price after tax and below the demand curve.

In the Diagram Above,D Represents the Original Demand Curve,S Represents