Use the following to answer questions:
Figure: Taxes and Deadweight Loss
-(Figure: Taxes and Deadweight Loss) In the diagram, producer surpluses before and after the tax are ______ and ______, respectively.
A) A + B; D + E
B) A + B + D + F; D + F
C) D + E + F; F
D) B + C; D

Question

Use the following to answer questions:
Figure: Taxes and Deadweight Loss 
-(Figure: Taxes and Deadweight Loss) In the diagram, producer surpluses before and after the tax are ______ and ______, respectively.
A) A + B; D + E 
B) A + B + D + F; D + F 
C) D + E + F; F 
D) B + C; D

Quizplus · Accepted Answer

Before the tax, producer surplus is area D + E + F. After the tax, producer surplus is only area F. Therefore, option C (D + E + F; F) is the correct choice.

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