Question 22 (1 point) Use the following information to answer the following ques

Question

Question 22 (1 point) Use the following information to answer the following questions The following graph depicts a market where a tax has been imposed P was the equilibrium price before the tax was imposed, and Qe was the equilibrium quantity. After the tax, Pe is the price that consumers pay, and Ps is the price that producers receive. Qr units are sold after the tax is imposed. NOTE: The areas B and Care rectangles that are divided by the supply curve S,. Include both sections of those rectangles when choosing your answers Pc Pe What is the total amount of producer and consumer surplus (i.e, social welfare) in this market before the tax is imposed? A+B+C+E+F+G A+C A+B+C+E F+G B+C+F+G

Explanation / Answer

Ans: A + B + C + E + F + G

Explanation:

Consumer Surplus = A + B + F

Producer Surplus = C + E + G

Total Surplus = CS + PS = A + B + C + E + F + G

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