Figure 9-12

-Refer to Figure 9-12.What would consumer surplus be after the tariff
A)A
B)A + B
C)A + B + C
D)A + C + G

Question

Figure 9-12
 
-Refer to Figure 9-12.What would consumer surplus be after the tariff
A)A 
B)A + B 
C)A + B + C 
D)A + C + G

Quizplus · Accepted Answer

Consumer surplus is the difference between the price consumers are willing to pay for a good and the price they actually pay. In this case, the price consumers are willing to pay is represented by the demand curve, and the price they actually pay is represented by the world price plus the tariff. The area between the demand curve and the world price plus the tariff represents the consumer surplus. In this case, the consumer surplus is represented by the area A + B.

Figure 9-12 -Refer to Figure 9-12.What Would Consumer Surplus Be After the Surplus