Graph 8-2

-According to Graph 8-2, the reduction in consumer surplus caused by the tax is:
A) $750
B) $1125
C) $375
D) $1000

Name: Graph 8-2 -According to Graph 8-2, the reduction in consumer surplus caused by the tax is: A) $750 B) $1125 C) $375 D) $1000
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Question

Graph 8-2
 
-According to Graph 8-2, the reduction in consumer surplus caused by the tax is:
A) $750 
B) $1125 
C) $375 
D) $1000

Quizplus · Accepted Answer

The reduction in consumer surplus caused by the tax is the area of the triangle formed by the tax, which is calculated as 0.5 * base * height. The base and height are determined by the change in price and quantity due to the tax.

Graph 8-2 -According to Graph 8-2, the Reduction in Consumer Surplus Caused