Figure 8-8
Suppose the government imposes a $10 per unit tax on a good.
-Refer to Figure 8-8.After the tax goes into effect,producer surplus is the area
A)D+F+G+H+J.
B)D+F+G+H.
C)D+F+J.
D)J.

Question

Figure 8-8
Suppose the government imposes a $10 per unit tax on a good. 
-Refer to Figure 8-8.After the tax goes into effect,producer surplus is the area
A)D+F+G+H+J. 
B)D+F+G+H. 
C)D+F+J. 
D)J.

Quizplus · Accepted Answer

After the tax, the producer surplus is the area below the price producers receive and above the supply curve, which is typically represented by the area J.

Figure 8-8 Suppose the Government Imposes a $10 Per Unit Tax on Tax