Question 4 1 pts Use the following information to answer the questions that foll

Question

Question 4 1 pts Use the following information to answer the questions that follow The following graph depicts a market where a tax has been imposed. Pe was the equilibrium price before the tax was imposed, and Qe was the equilibrium quantity. After the tax, Pc is the price that consumers pay, and Ps is the price that producers receive. QT units are sold after the tax is imposed. NOTE: The areas B and C are rectangles that are divided by the supply curve ST. Include both sections of those rectangles when choosing your answers ST a Q

Explanation / Answer

Consumer surplus is the difference between the price a consumer pays and the maximum price he or she is willing to pay for a quantity of output. The consumer surplus before tax is represented by the sum of the areas of A, B and F.

The correct answer is, A+B+F.

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