Figure 8-6
The vertical distance between points A and B represents a tax in the market.
-Refer to Figure 8-6.When the tax is imposed in this market,consumer surplus is
A)$600.
B)$900.
C)$1,500.
D)$3,000.

Question

Figure 8-6
The vertical distance between points A and B represents a tax in the market. 
-Refer to Figure 8-6.When the tax is imposed in this market,consumer surplus is
A)$600. 
B)$900. 
C)$1,500. 
D)$3,000.

Quizplus · Accepted Answer

When a tax is imposed, consumer surplus decreases. The new consumer surplus is the area below the demand curve and above the price buyers pay, up to the quantity sold. In this case, it is $900.

Figure 8-6 the Vertical Distance Between Points a and B Represents a Represents