If a tax of $1.20 is imposed on consumers in this market, what is the new consumer surplus? a.7500 b.1150 c.9250 d.6750 3.303.002.702.402.101.801.501.200.900.600.30500010000SupplyDemand15000 20000 25000 30000 35000 40000

Tax = 1.2 Equilibrium Price = 1.5 Equilibrium Quantity = 30000

Answered: f a tax of $1.20 is imposed on…

f a tax of $1.20 is imposed on consumers in this market, what is the new consumer surplus? a. 7500 b. 1150 c. 9250 d. 6750

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

If a tax of $1.20 is imposed on consumers in this market, what is the new consumer surplus?

	a.	7500
	b.	1150
	c.	9250
	d.	6750

3.30
3.00
2.70
2.40
2.10
1.80
1.50
1.20
0.90
0.60
0.30
5000
10000
Supply
Demand
15000 20000 25000 30000 35000 40000

Consumer’s gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price and up to the equilibrium quantity. Consumer surplus is represented by area A.

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