Graph 8-3

-According to Graph 8-3, consumer surplus before the tax is levied equals:

Name: Graph 8-3 -According to Graph 8-3, consumer surplus before the tax is levied equals:
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Question

Graph 8-3
 
-According to Graph 8-3, consumer surplus before the tax is levied equals:

Quizplus · Accepted Answer

Consumer surplus is the area below the demand curve and above the price line. Before the tax is levied, the price is $12, and the quantity demanded is 200. The area below the demand curve and above the price line is a triangle with a base of 200 and a height of $4, so the consumer surplus is $400.

Graph 8-3 -According to Graph 8-3, Consumer Surplus Before the Tax Is