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Figure 8-10 Refer to Figure 8-10. Suppose the government imposes a tax that reduces the
quantity sold in the market after the tax to Q2 Without the tax, the total surplus is a)
1/2(P2P8)(Q5.Q2) b) [1/2(POP2)Q2]+[(P2P8)Q2]+[1/2(P8.0)Q2] c) (P2P8)Q2 d)
[1/2(P0.P5)Q5]+[1/2(P5.0)Q5]

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  • 1. Figure 8-10 Refer to Figure 8-10. Suppose the government imposes a tax that reduces the quantity sold in the market after the tax to Q2 Without the tax, the total surplus is a) 1/2(P2P8)(Q5.Q2) b) [1/2(POP2)Q2]+[(P2P8)Q2]+[1/2(P8.0)Q2] c) (P2P8)Q2 d) [1/2(P0.P5)Q5]+[1/2(P5.0)Q5]