Lecture 9 Notes - Econ 101 Introduction to Microeconomics...

Info icon This preview shows pages 1–9. Sign up to view the full content.

View Full Document Right Arrow Icon
  Econ 101 Introduction to Microeconomics Professor Richard V. Burkhauser 8 8 Application: The Costs of Taxation
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Econ 101 – Professor Burkhauser Key Concepts deadweight loss, p. 163
Image of page 2
Figure 8.1 The Effects of a Tax Size of tax Quantity 0 Price Price buyers pay Price sellers receive Demand Supply Price without tax Quantity without tax Quantity with tax
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Econ 101 – Professor Burkhauser Tax Revenue T = the size of the tax Q = the quantity of the good sold T T times times Q Q = the government’s tax revenue = the government’s tax revenue How a Tax Affects Market Participants
Image of page 4
Figure 8.2 Tax Revenue Tax revenue ( T × Q) Size of tax ( T ) Quantity sold ( Q ) Quantity 0 Price Demand Supply Quantity without tax Quantity with tax Price buyers pay Price sellers receive
Image of page 5

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Figure 8.3 How a Tax Effects Welfare A E B D C F Quantity 0 Price Demand Supply = P B Q 2 = P S Price buyers pay Price sellers receive = P 1 Q 1 Price without tax
Image of page 6
Table 8.1 How a Tax Affects Welfare
Image of page 7

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Figure 8.4 The Deadweight Loss Cost to sellers Value to
Image of page 8
Image of page 9
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern