Figure 8-5

-Refer to Figure 8-5.If the tax is imposed on the buyer,what would the consumer surplus be
A)$600
B)$900
C)$1800
D)$2200

Question

Figure 8-5
 
-Refer to Figure 8-5.If the tax is imposed on the buyer,what would the consumer surplus be
A)$600 
B)$900 
C)$1800 
D)$2200

Quizplus · Accepted Answer

The consumer surplus is the area above the price paid by consumers and below the demand curve. If the tax is imposed on the buyer, the price they pay increases, reducing the consumer surplus. Based on the options, $900 is the most likely reduced consumer surplus after the tax.

Figure 8-5 -Refer to Figure 8-5.If the Tax Is Imposed on the Is