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Figure 8-3 the Vertical Distance Between Points a and B Represents a Represents

Question 17

Multiple Choice

Figure 8-3
The vertical distance between points A and B represents a tax in the market. Figure 8-3 The vertical distance between points A and B represents a tax in the market. -Refer to Figure 8-3. Which of the following statements is correct? A) Total surplus before the tax is imposed is $500. B) After the tax is imposed, consumer surplus is 45 percent of its pre-tax value. C) After the tax is imposed, producer surplus is 45 percent of its pre-tax value. D) Total surplus after the tax is imposed is $500.
-Refer to Figure 8-3. Which of the following statements is correct?


A) Total surplus before the tax is imposed is $500.
B) After the tax is imposed, consumer surplus is 45 percent of its pre-tax value.
C) After the tax is imposed, producer surplus is 45 percent of its pre-tax value.
D) Total surplus after the tax is imposed is $500.

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