Use the Following Information to Answer the Following Questions

question 130

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.

-What is the amount of the tax,as measured along the y axis?

• A) P_C + P_S
• B) P_e - P_S
• C) P_C - P_S
• D) P_C - P_e
• E) P_e + P_S

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