5 4 2 1 Demand 05 1 15 2 25 3 35 4 45 5 Quantity Refer to Figure 8-2. The loss of consumer surplus associated with some buyers dropping out of the market as a result of the tax is $3.

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter8: Application: The Cost Of Taxation
Section: Chapter Questions
Problem 2CQQ
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Figure 8-2
The vertical distance between points A and B represents a tax in the market.
12
11+
10
9
8
7
6
5
4
3+
2
1
Price
Demand
05 1 15 2 25 3 35 4 45 5
$3.
$0.
Supply
Refer to Figure 8-2. The loss of consumer surplus associated with some buyers
dropping out of the market as a result of the tax is
$1.50.
$4.50.
+
Quantity
Transcribed Image Text:Figure 8-2 The vertical distance between points A and B represents a tax in the market. 12 11+ 10 9 8 7 6 5 4 3+ 2 1 Price Demand 05 1 15 2 25 3 35 4 45 5 $3. $0. Supply Refer to Figure 8-2. The loss of consumer surplus associated with some buyers dropping out of the market as a result of the tax is $1.50. $4.50. + Quantity
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