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 producer 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 producer surplus is

Quizplus · Accepted Answer

With the tax, the producer surplus is 1/2 x (P8-0)x Q2. This is because the producer surplus is the area above the supply curve and below the price line, and the tax reduces the quantity sold, so the producer surplus is reduced.

Figure 8-10 -Refer to Figure 8-10 1/21 / 21/2 X (P5-0)x Q5

Figure 8-10
-Refer to Figure 8-10 $1 / 2$ X (P5-0)x Q5