Indirect taxes

What area represents consumer surplus before the tax?

• abg

• apc

• gphb

• pce

What area represents consumer surplus after the tax?

• abg

• apc

• gphb

• pce

What area represents producer surplus after the tax?

• abg

• apc

• fde

• pce

What area represents producer surplus before the tax?

• abg

• apc

• fde

• pce

What area represents government revenue?

• gfdb

• apce

• fdeh

• pce

What was producer revenue after the tax?

• g x Q1

• f x Q1

• p x Q

• p x Q1

What was producer revenue before the tax?

• g x Q1

• f x Q1

• p x Q

• p x Q1

What was consumer spending/expenditure after the tax?

• g x Q1

• f x Q1

• p x Q

• p x Q1

How many trades are lost because of the tax?

• Q

• Q1

• Q - Q1

What is consumer spending after the tax?

• 40 x 15

• 30 x 20

• 30 x 10

• 20 x 15