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Figure 4.8 Price (dollars per case) SUPPLY with tax Supply 20 O SO 90 Quantity (thousands of case Figure 4.8 shows the market for beer.
Figure 4.8 Price (dollars per case) SUPPLY with tax Supply 20 O SO 90 Quantity (thousands of case Figure 4.8 shows the market for beer. The government plans to impose a unit tax in this market. 10) Refer to Figure 4.8. As a result of the tax, is there a loss in consumer surplus? 10) A) No, because the market reaches a new equilibrium. B) No, because consumers are charged a lower price to cover their tax burden. C) Yes, because consumers paying a price above the economically efficient price. D) No, because the producer pays the tax
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