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September 21, 2014

Homework Help: Economics-Repost of Question

Posted by G on Sunday, April 6, 2008 at 4:10pm.

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

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