The following equations describe the market for mapping printers in California: Demand: Price = 5,000 - 3Qd Supply : Price = 1,000 + 5Qs The government imposes a lump sum tax of $1,800/unit on the sellers. Find the change in consumer surplus as a result of the tax.

The following equations describe the market for mapping printers in California: Demand: Price = 5,000 - 3Qd Supply : Price = 1,000 + 5Qs The government imposes a lump sum tax of $1,800/unit on the sellers. Find the change in consumer surplus as a result of the tax.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter19: Elasticity

Section: Chapter Questions

Problem 14QP

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Consumer’s gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price and up to the equilibrium quantity. Consumer surplus is represented by area A.

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