Graph 8-2

-According to Graph 8-2, the total surplus (consumer, producer and government) with the tax is:
A) $2250
B) $1500
C) $1875
D) $1125

Question

Graph 8-2
 
-According to Graph 8-2, the total surplus (consumer, producer and government) with the tax is:
A) $2250 
B) $1500 
C) $1875 
D) $1125

Quizplus · Accepted Answer

The total surplus is the sum of consumer surplus, producer surplus, and government revenue. From the graph, we can see that consumer surplus is $750, producer surplus is $1125, and government revenue is $375. Therefore, the total surplus is $750 + $1125 + $375 = $2250.

Graph 8-2 -According to Graph 8-2, the Total Surplus (Consumer, Producer and Surplus