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 loss in consumer surplus due to the imposition of the tax is given by the areas ________.

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 loss in consumer surplus due to the imposition of the tax is given by the areas ________.

Quizplus · Accepted Answer

The loss in consumer surplus due to the imposition of the tax is represented by the areas JBIE and BIA, which are the areas between the original demand curve and the new price level after the tax.

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