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 for those buyers of the good who continue to buy it after the tax is imposed is
A)$0.
B)$1.50.
C)$3.
D)$4.50.

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 for those buyers of the good who continue to buy it after the tax is imposed is
A)$0. 
B)$1.50. 
C)$3. 
D)$4.50.

Quizplus · Accepted Answer

The loss of consumer surplus for those who continue to buy the good after the tax is imposed is the area of the triangle formed by the price increase due to the tax and the quantity that continues to be purchased. This area is typically calculated as 0.5 * base * height, which in this case is $3.

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