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This image presents a supply and demand graph with a tax imposed on buyers. The equilibrium before the tax was imposed is indicated by the intersection of the supply curve $ S $ and the demand curve $ D $, with a price of $10 and a quantity of 600 units. After the tax is introduced, the price consumers pay increases to $16, while the price suppliers receive decreases to $6, resulting in a tax wedge between them.

The question asks what would happen to the **consumer surplus** after the tax. Consumer surplus is the area between the demand curve and the price line up to the equilibrium quantity. The tax reduces this area because consumers now pay more for a lower quantity of goods.

To calculate the change in consumer surplus:
1. **Before tax**: Consumer surplus is the area of the triangle above the price $10 and below the demand curve, up to a quantity of 600.
   - The height of the triangle is from $22 (maximum price consumers are willing to pay) to $10 (price before tax), i.e., $12.
   - The base is the quantity, 600 units.
   - Consumer surplus before tax = $\frac{1}{2} \times 12 \times 600 = 3600$.

2. **After tax**: Consumer surplus is the area of the triangle above the price $16 (new price consumers pay) and below the demand curve, up to a reduced quantity of 300.
   - The new height is from $22 to $16, i.e., $6.
   - The base is now 300 units.
   - Consumer surplus after tax = $\frac{1}{2} \times 6 \times 300 = 900$.

3. **Change in consumer surplus**:
   \[
   \text{Loss in consumer surplus} = 3600 - 900 = 2700.
   \]
Therefore, the correct answer is: **It would fall by $2700** (as highlighted).

Would you like any more details or further explanation?

Here are some related questions you might find useful:
1. How does the producer surplus change after the tax?
2. How is the deadweight loss calculated in this scenario?
3. What factors could influence the elasticity of demand in this context?
4. What is the relationship between tax incidence and market elasticity?
5. How would the total revenue from the tax be computed?

**Tip**: The tax burden is shared between buyers and sellers based on the elasticity of supply and demand. The more inelastic side bears a greater burden.

Refer to the figure. What would happen to the consumer surplus if the tax were imposed on the buyers?

Understand how a tax imposed on buyers reduces consumer surplus, using a supply and demand graph. The problem explores tax effects on price, quantity, and the changes in consumer surplus. Suitable for college-level economics or advanced high school students.

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