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.Without the tax,the total 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.Without the tax,the total surplus is

Quizplus · Accepted Answer

The total surplus without the tax is the sum of consumer surplus and producer surplus at the equilibrium quantity Q5, which is represented by the area of the triangle with height (P0-P5) and base Q5.

Figure 8-10 -Refer to Figure 8-10 1/21 / 21/2 X (P0-P5)x Q5] + [

Figure 8-10
-Refer to Figure 8-10 $1 / 2$ X (P0-P5)x Q5] + [