Figure 8-4

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

Question

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

Quizplus · Accepted Answer

Area A represents the consumer surplus, B represents the producer surplus, and D represents the government revenue from the tax. Area F represents the deadweight loss. Thus, the total surplus (consumer, producer, and government) with the tax is the sum of areas A, B, D, and F, which is represented by choice C.

Figure 8-4 -Refer to Figure 8-4.Which Area Represents the Total Surplus (Consumer,producer,and