Use the Following Information to Answer the Following Questions

question 17

Multiple Choice

Use the following information to answer the following questions.
The following graph depicts a market where a tax has been imposed.P_e was the equilibrium price before the tax was imposed,and Q_e was the equilibrium quantity.After the tax,P_C is the price that consumers pay,and P_S is the price that producers receive.Q_T units are sold after the tax is imposed.NOTE: The areas B and C are rectangles that are divided by the supply curve S_T.Include both sections of those rectangles when choosing your answers.

-Which areas represent the amount of producer surplus lost due to the tax?

• A) G
• B) A + B + C + E
• C) C
• D) C + G
• E) B + F

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A Task

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