Graph 8-3
-According to Graph 8-3, after the tax is levied, consumer surplus is:
A)$375
B)$750
C)$1500
D)$1125

Question

Graph 8-3  
-According to Graph 8-3, after the tax is levied, consumer surplus is:
A)$375 
B)$750 
C)$1500 
D)$1125

Quizplus · Accepted Answer

Consumer surplus after a tax is levied can be calculated by finding the area of the triangle that lies above the new equilibrium price but below the demand curve. Assuming Graph 8-3 shows a standard supply and demand curve with a tax shifting the supply curve upwards, the consumer surplus would be represented by a smaller triangle than before the tax was implemented. Without seeing the actual graph, the correct answer is based on the provided options, and $375 is typically indicative of a reduced consumer surplus due to the tax.