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Refer to the Graph Shown

question 43

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Refer to the graph shown. Assume the market is initially in equilibrium at point b in the graph but the imposition of a per-unit tax on this product shifts the supply curve up from S0 to S1. The lost consumer surplus of this tax is equal to the area: Refer to the graph shown. Assume the market is initially in equilibrium at point b in the graph but the imposition of a per-unit tax on this product shifts the supply curve up from S<sub>0</sub> to S<sub>1</sub>. The lost consumer surplus of this tax is equal to the area:   A)  P<sub>1</sub>(P<sub>2</sub> − t) ab. B)  P<sub>2</sub>P<sub>1</sub>bc. C)  cab. D)  cdb.


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