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 cost of the trades that do not occur after the tax is represented by the area
A) IFBC.
B) 0KCB
C) JFBC.
D) 0LIF.
E) 0GJF.

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 cost of the trades that do not occur after the tax is represented by the area
A) IFBC. 
B) 0KCB 
C) JFBC. 
D) 0LIF. 
E) 0GJF.

Quizplus · Accepted Answer

The area JFBC represents the total cost of the trades that do not occur after the tax, as it is the area between the supply and demand curves that is lost due to the tax.

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