Figure 8-2
The vertical distance between points C and D 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)$4.
B)$6.
C)$12.
D)$8.

Question

Figure 8-2
The vertical distance between points C and D represents a tax in the market.
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-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)$4. 
B)$6. 
C)$12. 
D)$8.

Quizplus · Accepted Answer

The loss of consumer surplus is the area of the triangle below the demand curve and above the new equilibrium price. This area is a right triangle with a base of 4 and a height of 3, so its area is (1/2) * 4 * 3 = 6.

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