Refer to Figure 4-25. After the tax is levied, consumer surplus is represented by area

A) A.
B) A + B + C.
C) D + E + F.
D) F.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, indicating economic benefit.

Tax

Compulsory financial charges or other types of levies imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.