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 producer surplus as a result of the tax is
A)$1.
B)$2.
C)$3.
D)$4.

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 producer surplus as a result of the tax is
A)$1. 
B)$2. 
C)$3. 
D)$4.

Quizplus · Accepted Answer

The loss of producer surplus due to the tax is represented by the area of the triangle that forms between the supply curve and the price received by producers after the tax. This area is typically calculated as 0.5 * base * height, which in this case equals $3.

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