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1.

The diagram to the right shows a market in which a price floor of $3.00 per unit has been imposed. 6.00- 5.50- With the price floor, consumer surplus is $ (enter a 5.00- S numeric response using an integer), 4.50- producer surplus is $ 4.00- 3.50- deadweight loss is $ Price floor Price 3.00- and surplus transferred from consumers to producers is 2.50-... $ 2.00- 1.50- 1.00- D 0.50- 0.00- 5 10 15 20 25 30 35 40 45 50 Quantity (in thousands)Suppose the current equilibrium price of cheese pizzas is $9.00, and 11 million pizzas are sold per month. After the federal government imposes a $3.00 per pizza tax, the equilibrium price of pizzas rises to $10.00, and the equilibrium quantity falls to 9 million. Compare the economic surplus in this market when there is no tax to when there is a tax on pizza. With the tax. the change in economic surplus is A. the new surplus equal to the area under the demand curve and above the supply curve for units between the quantity with the tax and market equilibrium quantity. . the deadweight loss equal to the area under the demand curve and above the supply curve for units between the quantity with the tax and market equilibrium quantity. . the new surplus equal to the area under the demand curve and above the supply curve for the market equilibrium quantity. the deadweight loss equal to the area under the demand curve and above the supply curve for the quantity with the tax. New government revenue with the tax can be represented by if} A. the area of a rectangle with a height equal to the difference in the equilibrium price and the tax and a base equal to the quantity sold. . the area of a rectangle with a height equal to the tax and a base equal to the quantity sold. . the area of the triangle above the supply curve and below the equilibrium price. the area of a rectangle with a height equal to the equilibrium price and a base equal to the quantity sold