Figure 8-9
The vertical distance between points A and C represents a tax in the market.
-Refer to Figure 8-9.The consumer surplus without the tax is
A)$2,000.
B)$5,000.
C)$8,000.
D)$16,000.

Question

Figure 8-9
The vertical distance between points A and C represents a tax in the market. 
-Refer to Figure 8-9.The consumer surplus without the tax is
A)$2,000. 
B)$5,000. 
C)$8,000. 
D)$16,000.

Quizplus · Accepted Answer

The consumer surplus without the tax is the triangle above the equilibrium price and below the demand curve, which has a base of 10,000 and height of 8, so (1/2) x 10,000 x 8 = $40,000. Therefore, the answer is C) $8,000.

Figure 8-9 the Vertical Distance Between Points a and C Represents a Represents