Chapter 8 Part I -- Taxes and Surplus

by Elson Blunt on Jun 30, 2014

In this video we show that taxes generate government revenue and show it as a kind of surplus. When a tax is applied, consumer and producer surplus get smaller, and total surplus (including tax revenue) also gets smaller because of deadweight loss -- people avoiding the tax by avoiding the purchase or sale of the good.

  • image/svg+xml
    Share

Permalink

Embed

Share On

Remind
Google Classroom