The figure above shows the market for MP3 players, where S is the supply curve and D is the demand curve before any tax is imposed. The government imposes a $10 per unit tax on sellers of MP3 players.
-Based on the figure above,after the tax is imposed,the consumer surplus

Question

Quizplus · Accepted Answer

The imposition of a tax typically reduces consumer surplus because it raises the price consumers pay and reduces the quantity of goods they buy. The area representing consumer surplus before the tax is larger than the area representing consumer surplus after the tax, indicating a decrease. Without seeing the specific figure, the exact calculation cannot be verified, but generally, a tax imposition leads to a decrease in consumer surplus, not an increase or no change.

The Figure Above Shows the Market for MP3 Players, Where