ECON 2302 - What happens in the market after the taxes
Question # 00573891
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Updated on: 08/11/2017 01:45 PM Due on: 08/11/2017
- What happens in the market after the taxes are imposed? Make sure to discuss its impact on consumer surplus, producer surplus and total surplus.
- What happens to the tax revenue when the tax size is increased? For example, if the tax size is increased from small to medium to large.
- Explain what is deadweight loss. When does the deadweight loss increase and when does it decrease? Make sure to take into account the Laffer curve.
- How does elasticity affect the tax revenue and deadweight loss? Explain in detail.
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Solution: ECON 2302 - What happens in the market after the taxes