Chapter 9 - Government in the Marketplace

Chapter 9- - P Q D S 800 10 An Excise Tax Collected from Consumers A B C D F P Q D S 8 An Excise Tax Identical Results E P Q D S 1,000 12,00 10 14

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Chapter 9 Government in the Marketplace
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P Q D S 10,000 $1,500 A Price Ceiling
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A B C D F E P Q D S 800 10 14 6 1,200 CS1 = A + B + C CS2 = A + B + E Δ CS = E C PS1 = E + D + F PS2 = F Δ PS = E D Δ CS + Δ PS = C D
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P Q D S 1,000 10 A Price Floor
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A B C F E P Q D S 1,000 800 10 14 1,200 D H G CS1 = A + B + C CS2 = A Δ CS = B C PS1 = E + F PS2 = E + F + B + C + D Δ PS = + B + C + D Δ CS + Δ PS + Tax = C F H G Tax = C D F H G Consumers Producers Taxpayers
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P Q D S 1,000 10 An Excise Tax Collected from Producers
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Unformatted text preview: P Q D S 800 10 An Excise Tax Collected from Consumers A B C D F P Q D S 800 10 12 8 An Excise Tax: Identical Results E P Q D S 1,000 12,00 10 14 6 An Economic Subsidy Given to Producers A B C D E Δ PS = A + B Δ CS = C + D Tax = A + B + C + D + E A = ? B = ? C = ? D = ? P Q D S 1,000 12,00 10 14 6 An Economic Subsidy: Identical Results Δ PS Δ CS DWL Rent Seeking...
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This note was uploaded on 11/08/2010 for the course ECN ECN 001A taught by Professor Scottcarrell during the Spring '10 term at UC Davis.

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Chapter 9- - P Q D S 800 10 An Excise Tax Collected from Consumers A B C D F P Q D S 8 An Excise Tax Identical Results E P Q D S 1,000 12,00 10 14

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