Figure 8-6
The vertical distance between points A and B represents a tax in the market.
-Refer to Figure 8-6.What happens to producer surplus when the tax is imposed in this market?
A)Producer surplus falls by $600.
B)Producer surplus falls by $900.
C)Producer surplus falls by $1,800.
D)Producer surplus falls by $2,100.

Question

Figure 8-6
The vertical distance between points A and B represents a tax in the market. 
-Refer to Figure 8-6.What happens to producer surplus when the tax is imposed in this market?
A)Producer surplus falls by $600. 
B)Producer surplus falls by $900. 
C)Producer surplus falls by $1,800. 
D)Producer surplus falls by $2,100.

Quizplus · Accepted Answer

The Answer of Figure 8-6
The vertical distance between points A and B represents a tax in the market. 
-Refer to Figure 8-6.What happens to producer surplus when the tax is imposed in this market?
A)Producer surplus falls by $600. 
B)Producer surplus falls by $900. 
C)Producer surplus falls by $1,800. 
D)Producer surplus falls by $2,100.

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