Figure 8-2
The vertical distance between points A and B represents a tax in the market.
-Refer to Figure 8-2.The loss of consumer surplus as a result of the tax is
A)$1.50.
B)$3.
C)$4.50.
D)$6.

Question

Figure 8-2
The vertical distance between points A and B represents a tax in the market. 
-Refer to Figure 8-2.The loss of consumer surplus as a result of the tax is
A)$1.50. 
B)$3. 
C)$4.50. 
D)$6.

Quizplus · Accepted Answer

The loss of consumer surplus is the triangle formed by points A, C, and D, which has a base of 3 units and a height of $1.50. Therefore, the loss of consumer surplus is 0.5 x 3 x $1.50 = $4.50.

Figure 8-2 the Vertical Distance Between Points a and B Represents a Represents