Question 40Please refer to the description of a tax on a market, represented by the graphicConsumer surplus before the tax is represented by the area(s).Check all thatapply.O HO EL. The vertical distance between points A and B represents a per-unit tax in the market.Price121110 tcSupply8-D7-H,G4L3-B21-Demand05 1 13 2 25 3 35 4 45 5DeaetityE...........+++++

Consumer surplus is that area which are lies below the demand curve and above the price level.

Answered: Please refer to the description of a…

Please refer to the description of a tax on a market, represented by the graphic Consumer surplus before the tax is represented by the area(s) Check all that apply. D L H E.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Consumers, Producers, And The Efficiency Of Markets

Section: Chapter Questions

Problem 1PA

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Question

The vertical distance between points A and B represents a per-unit tax in the market.
Price
12
11
10 tc
Supply
8-
D
7-
H,
G
4
L
3-
B
2
1-
Demand
05 1 13 2 25 3 35 4 45 5
Deaetity
E.
..........
+++++

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