Thursday
March 30, 2017

Post a New Question

Posted by on .

I am not getting any of the answers that are provided for this question:

Price
$16--------|---....|
$14........|----...|
$12-----TAX|-----..|
$10........|----...|
$8---------|---....|
...........|.......|
...........|.......|
...........|.......|
...........|.......|
...........|.......|
...........15..20..25Quantity

According to the graph, the reduction in consumer surplus caused by the tax would be?
A-$100,B-$80,C-$70,D-$60

  • Economics-Repost of Question - ,

    As you now know, graphs and graphics on this Jiskha site is near impossible. I don't understand your graph at all.

    That said: Consumer surplus is represented by the AREA below the demand curve but above price. A tax would raise, vertically, the supply curve by the amount of the tax. This leads to a new price. What is the numeric area change in consumer surplus?

Answer This Question

First Name:
School Subject:
Answer:

Related Questions

More Related Questions

Post a New Question