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.The total benefit of the trades that do not occur after the tax is represented by the area
A) JFBC.
B) IFBC.
C) M0FI.
D) M0BC.
E) IJC.

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.The total benefit of the trades that do not occur after the tax is represented by the area
A) JFBC. 
B) IFBC. 
C) M0FI. 
D) M0BC. 
E) IJC.

Quizplus · Accepted Answer

The total benefit of the trades that do not occur after the tax is represented by the deadweight loss, which is the triangle IFB.

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