The figure below shows the demand (D) and supply (S) curves for Good X before and after a tax is imposed on each unit of the good sold.

-Refer to the figure above.The consumer surplus before the tax is imposed is given by the area ________.

Question

The figure below shows the demand (D) and supply (S) curves for Good X before and after a tax is imposed on each unit of the good sold.
 
-Refer to the figure above.The consumer surplus before the tax is imposed is given by the area ________.

Quizplus · Accepted Answer

The consumer surplus before the tax is imposed is the area above the price line and below the demand curve, which is triangle CAE.

The Figure Below Shows the Demand (D) and Supply (S)