Table 12-4

-Refer to Table 12-4.Suppose that the government imposes a $2 tax on delights,causing the price to increase from $4.00 to $6.00.Total consumer surplus will fall from
A) $6 to $3.
B) $7 to $4.
C) $6 to $2.
D) $5 to $3.

Question

Table 12-4
 
-Refer to Table 12-4.Suppose that the government imposes a $2 tax on delights,causing the price to increase from $4.00 to $6.00.Total consumer surplus will fall from
A) $6 to $3. 
B) $7 to $4. 
C) $6 to $2. 
D) $5 to $3.

Quizplus · Accepted Answer

The consumer surplus is the area between the demand curve and the price level. When the price increases from $4 to $6, the consumer surplus decreases. The options suggest a decrease of $3, and option A is the only one that reflects this change from $6 to $3.

Table 12-4 -Refer to Table 12-4.Suppose That the Government Imposes a $2