Figure 8-2
The vertical distance between points A and B represents a tax in the market.
-Refer to Figure 8-2.Consumer surplus without the tax is
A)$6,and consumer surplus with the tax is $1.50.
B)$6,and consumer surplus with the tax is $4.50.
C)$10,and consumer surplus with the tax is $1.50.
D)$10,and consumer surplus with the tax is $4.50.

Question

Figure 8-2
The vertical distance between points A and B represents a tax in the market. 
-Refer to Figure 8-2.Consumer surplus without the tax is
A)$6,and consumer surplus with the tax is $1.50. 
B)$6,and consumer surplus with the tax is $4.50. 
C)$10,and consumer surplus with the tax is $1.50. 
D)$10,and consumer surplus with the tax is $4.50.

Quizplus · Accepted Answer

Consumer surplus without the tax is the area above the equilibrium price line and below the demand curve, up to point A, which is $6. Consumer surplus with the tax is the area above the equilibrium price line and below the new demand curve (after the tax), up to point B, which is $1.50.

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