ECO 2030. Principles of Economics-Price Theory
Deadweight Loss of Taxes
Types
- Sales tax
- Excise tax
Tax on Seller/Buyer
- Price without tax
- Price buyers pay
- Price sellers pay
- Change in quantity
- Tax revenue
Welfare Analysis
- With/without tax
- Consumer surplus
- Producer surplus
- Tax revenue
- Total surplus
- Deadweight loss
Elasticity and Deadweight Loss
- Supply elasticity
- Demand elasticity
- Application: Labor supply
Tax Revenue and Deadweight Loss
- Small, medium, and large taxes
- Supply-side economics