Final answer:
The area that represents consumer surplus before a tax is levied is the somewhat triangular area labeled by F. Consumer surplus occurs when the equilibrium price is less than what many consumers are willing to pay. In this case, consumers would have been willing to purchase a larger quantity at a higher price, resulting in surplus.
Step-by-step explanation:
The area that represents consumer surplus before a tax is levied is the somewhat triangular area labeled by F.
Consumer surplus is the difference between what consumers are willing to pay and what they actually pay in a market. In this case, the equilibrium price in the market is less than what many consumers are willing to pay, resulting in consumer surplus. The triangular area labeled by F represents the extent of this surplus.
For example, point J on the demand curve shows that consumers would have been willing to purchase a quantity of 20 million even at a price of $90. Since the equilibrium price is lower than $90, consumers would experience surplus before the tax is levied.