Chapter 8 Notes

Chapter 8 Notes - -Which goods or services should...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 8 03/12/08 - Dead weight loss The fall in total surplus that results from a market distortion, such as a tax. Equal to the TS without tax minus the TS with tax. What determines the size of the DWL
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: -Which goods or services should government tax to raise the revenue it needs: Those with the smallest DWL.-DWL is large or small depending on the price elasitices of supply and demand...
View Full Document

This note was uploaded on 04/17/2008 for the course ECO 201 taught by Professor Zenker during the Spring '08 term at Elon.

Ask a homework question - tutors are online