Figure 8-1
-Refer to Figure 8-1.Suppose the government imposes a tax of P' - P'''.The consumer surplus before the tax is measured by the area
A)M.
B)L+M+Y.
C)J.
D)J+K+I.

Name: Figure 8-1 -Refer to Figure 8-1.Suppose the government imposes a tax of P' - P'''.The consumer surplus before the tax is measured by the area A)M. B)L+M+Y. C)J. D)J+K+I.
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Question

Figure 8-1 
-Refer to Figure 8-1.Suppose the government imposes a tax of P' - P'''.The consumer surplus before the tax is measured by the area
A)M. 
B)L+M+Y. 
C)J. 
D)J+K+I.

Quizplus · Accepted Answer

Consumer surplus before the tax is the area above the price level and below the demand curve, which is represented by the area J+K+I.

Figure 8-1 -Refer to Figure 8-1.Suppose the Government Imposes a Tax of a Tax