Graph 8-3

-According to Graph 8-3, the reduction in consumer surplus caused by the tax is:

Name: Graph 8-3 -According to Graph 8-3, the reduction in consumer surplus caused by the tax is:
Brand: Quizplus
Rating: 4.9 (41 reviews)

Question

Graph 8-3
 
-According to Graph 8-3, the reduction in consumer surplus caused by the tax is:

Quizplus · Accepted Answer

The reduction in consumer surplus is equal to the area of the triangle formed by the original demand curve, the new (post-tax) demand curve, and the vertical line at the quantity sold. This area is equal to $800 in this graph. Therefore, the correct answer is (C).

Graph 8-3 -According to Graph 8-3, the Reduction in Consumer Surplus Caused