(Figure: Market for Tickets I) Which of the following statements is (are) TRUE? I. Consumer surplus after the tax is area A + B.
II) Producer surplus before the tax is D + E + F.
III) Consumer surplus before the tax is A + C + E.
IV) The size of the tax is $0.50, raising $170,000 in tax revenue.
A) I and II
B) II, III, and IV
C) IV
D) II and IV

Question

(Figure: Market for Tickets I) Which of the following statements is (are) TRUE?  I. Consumer surplus after the tax is area A + B.
II) Producer surplus before the tax is D + E + F.
III) Consumer surplus before the tax is A + C + E.
IV) The size of the tax is $0.50, raising $170,000 in tax revenue.
A) I and II 
B) II, III, and IV 
C) IV 
D) II and IV

Quizplus · Accepted Answer

The Answer of (Figure: Market for Tickets I) Which of the following statements is (are) TRUE?  I. Consumer surplus after the tax is area A + B.
II) Producer surplus before the tax is D + E + F.
III) Consumer surplus before the tax is A + C + E.
IV) The size of the tax is $0.50, raising $170,000 in tax revenue.
A) I and II 
B) II, III, and IV 
C) IV 
D) II and IV

(Figure: Market for Tickets I) Which of the Following Statements