Table 12-3

-Refer to Table 12-3.If the government imposes a $2.00 tax on Delights,causing the price to increase from $5.00 to $7.00,what happens to total consumer surplus
A)It will fall from $3 to $1.
B)It will fall from $4 to $1.
C)It will fall from $7 to $3.
D)It will fall from $7 to $4.

Question

Table 12-3
 
-Refer to Table 12-3.If the government imposes a $2.00 tax on Delights,causing the price to increase from $5.00 to $7.00,what happens to total consumer surplus
A)It will fall from $3 to $1. 
B)It will fall from $4 to $1. 
C)It will fall from $7 to $3. 
D)It will fall from $7 to $4.

Quizplus · Accepted Answer

The Answer of Table 12-3
 
-Refer to Table 12-3.If the government imposes a $2.00 tax on Delights,causing the price to increase from $5.00 to $7.00,what happens to total consumer surplus
A)It will fall from $3 to $1. 
B)It will fall from $4 to $1. 
C)It will fall from $7 to $3. 
D)It will fall from $7 to $4.

Table 12-3 -Refer to Table 12-3.If the Government Imposes a $2.00 Tax