Complete the following table by indicating which areas make up consumer surplus before the tariff, consumer surplus after the tariff, and the loss to consumers associated with the... Complete the following table by indicating which areas make up consumer surplus before the tariff, consumer surplus after the tariff, and the loss to consumers associated with the tariff. Check all that apply. Also, do similar tasks for producer surplus and total surplus.
Understand the Problem
The question is asking us to analyze a graph related to tariffs and to complete a table regarding consumer surplus, producer surplus, and total surplus before and after the tariff is applied, as well as any losses associated with it.
Answer
Consumer surplus: Before (A+B+C), After (A); Loss (B+C). Producer surplus: Before (E), After (E+F); Gain (F).
Consumer surplus before the tariff is area A+B+C. After the tariff, it's area A. The loss to consumers is area B+C. Producer surplus before the tariff is area E. After the tariff, it's area E+F. The gain to producers is area F.
Answer for screen readers
Consumer surplus before the tariff is area A+B+C. After the tariff, it's area A. The loss to consumers is area B+C. Producer surplus before the tariff is area E. After the tariff, it's area E+F. The gain to producers is area F.
More Information
Before the tariff, consumers benefit from a larger surplus as they pay lower prices. Tariffs raise prices and reduce consumer surplus, while potentially increasing producer surplus by protecting domestic industries.
Tips
A common mistake is confusing the areas that represent different surpluses; always refer back to the graph.
Sources
AI-generated content may contain errors. Please verify critical information
