Refer to Figure 1.1. Producer surplus in the market above, with a per unit tax of P1 minus P3, equals
a. area a
b. area a+b+c
c. area f
d. None of the above.
Answer: C
Refer to Figure 1.1. Producer surplus in the market above, with a per unit tax of P1 minus P3, equals
a. area a
b. area a+b+c
c. area f
d. None of the above.
Answer: C