Graph 8-3
-According to Graph 8-3, the total surplus (consumer, producer and government) with the tax is:
A)$2250
B)$1500
C)$1875
D)$1125

Question

Graph 8-3  
-According to Graph 8-3, 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 with the tax is the sum of the consumer surplus, producer surplus, and government revenue. From the graph, we can see that the consumer surplus is $750, the producer surplus is $1125, and the government revenue is $375. Therefore, the total surplus is $750 + $1125 + $375 = $2250.