Figure 8-10
-Refer to Figure 8-10.Suppose the government imposes a tax that reduces the quantity sold in the market after the tax to Q2.With the tax,the consumer surplus is

Question

Figure 8-10 
-Refer to Figure 8-10.Suppose the government imposes a tax that reduces the quantity sold in the market after the tax to Q2.With the tax,the consumer surplus is

Quizplus · Accepted Answer

The consumer surplus after the tax is the area of the triangle formed by the price P0, the price P2, and the quantity Q2, which is calculated as $1 / 2$ x (P0-P2)x Q2.

Figure 8-10 -Refer to Figure 8-10 1/21 / 21/2 X (P0-P2)x Q2

Figure 8-10
-Refer to Figure 8-10 $1 / 2$ X (P0-P2)x Q2