Table 12-2
-Refer to Table 12-2. Suppose that the government imposes a $2 tax on delights, causing the price to increase from $4.00 to $6.00. Total consumer surplus will fall from
A)$6 to $3.
B)$7 to $4.
C)$6 to $2.
D)$5 to $3.

Question

Table 12-2 
-Refer to Table 12-2. Suppose that the government imposes a $2 tax on delights, causing the price to increase from $4.00 to $6.00. Total consumer surplus will fall from
A)$6 to $3. 
B)$7 to $4. 
C)$6 to $2. 
D)$5 to $3.

Quizplus · Accepted Answer

The consumer surplus falls from $6 to $3 because the price increase reduces the area between the demand curve and the price level, which represents consumer surplus.

Table 12-2 -Refer to Table 12-2. Suppose That the Government Imposes a Government