What is total surplus with a tax equal to
A)consumer surplus plus producer surplus
B)consumer surplus minus producer surplus
C)consumer surplus minus tax revenue, plus producer surplus
D)consumer surplus plus producer surplus, plus tax revenue

Question

Quizplus · Accepted Answer

Total Surplus with a tax is the consumer surplus, producer surplus, and tax revenue combined. Therefore, choice D is the correct answer as it includes the sum of consumer and producer surplus as well as the tax revenue.

What Is Total Surplus with a Tax Equal to