Figure 8-4

-Refer to Figure 8-4.The total surplus (consumer,producer,and government)with the tax is represented by area
A)C + E.
B)A + B + C.
C)D + E + F.
D)A + B + D + F.

Question

Figure 8-4
 
-Refer to Figure 8-4.The total surplus (consumer,producer,and government)with the tax is represented by area
A)C + E. 
B)A + B + C. 
C)D + E + F. 
D)A + B + D + F.

Quizplus · Accepted Answer

The total surplus with the tax is represented by the sum of consumer surplus (A), producer surplus before the tax (B), producer surplus after the tax (D), and government revenue (F). Therefore, the total surplus is A + B + D + F, which corresponds to choice D.

Figure 8-4 -Refer to Figure 8-4.The Total Surplus (Consumer,producer,and Government)with the Tax