I am not getting any of the answers that are provided for this question:

Price
$16--------|---....|
$14........|----...|
$12-----TAX|-----..|
$10........|----...|
$8---------|---....|
...........|.......|
...........|.......|
...........|.......|
...........|.......|
...........|.......|
...........15..20..25Quantity

According to the graph, the reduction in consumer surplus caused by the tax would be?
A-$100,B-$80,C-$70,D-$60

1 answer

As you now know, graphs and graphics on this Jiskha site is near impossible. I don't understand your graph at all.

That said: Consumer surplus is represented by the AREA below the demand curve but above price. A tax would raise, vertically, the supply curve by the amount of the tax. This leads to a new price. What is the numeric area change in consumer surplus?
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