Search results
8 maj 2014 · How to graph a per-unit tax and its effects in AP Microeconomics. You will be able to locate the area of deadweight loss, tax revenue, consumer surplus, and ...
22 mar 2024 · The price buyers pay is at the top of the tax revenue box (Pb), the price sellers receive after paying the tax is at the bottom of the tax revenue box (Ps). The portion of the per unit tax buyers and sellers pay is determined by comparing these prices to the original equilibrium price.
8 maj 2022 · Starting with Qd= 60-10P and Qs = 10P and supposing that the government imposes an excise tax of $2 per unit collected from producers, find (a) the new equilibrium price and quantity and (b)...
Per-unit taxes shift the supply curve upward by the amount of the tax, leading to a decrease in equilibrium quantity and an increase in price for consumers. The burden of a per-unit tax is shared between consumers and producers, depending on the price elasticity of demand and supply.
We will look at two methods to understand how taxes affect the market: by shifting the curve and using the wedge method. First, we must examine the difference between legal tax incidence and economic tax incidence. When the government sets a tax, it must decide whether to levy the tax on the producers or the consumers.
The tax revenue is given by the shaded area, which we obtain by multiplying the tax per unit by the total quantity sold Qt. The tax incidence on the consumers is given by the difference between the price paid Pc and the initial equilibrium price Pe.
This video is made for 1st year college students or AP/IB Economics students. It focuses on government intervention into a product market. The type of inte...
