ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Figure 8-1
PRICE
à
J
P
P
K
L
Y
B
M
N
QUANTITY
Supply
Demand
Refer to Figure 8-1. Suppose the government imposes a tax of P' - P. The area measured by M represents
a. consumer surplus before the tax.
Ob. consumer surplus after the tax.
c. producer surplus before the tax.
Od. producer surplus after the tax.
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Transcribed Image Text:Figure 8-1 PRICE à J P P K L Y B M N QUANTITY Supply Demand Refer to Figure 8-1. Suppose the government imposes a tax of P' - P. The area measured by M represents a. consumer surplus before the tax. Ob. consumer surplus after the tax. c. producer surplus before the tax. Od. producer surplus after the tax.
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