R perfectly elastic supply 11 buyer pays entire ti

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Unformatted text preview: 3 5 Quantity (thousands of kilograms per week) Taxes and Efficiency 130 Price incl tax (do P l. ollars per player) r Consumer surplus S + tax S 105 100 95 Tax Revenue Deadweight loss 75 0 1 Producer surplus D 5 6 7 8 9 10 2 3 4 Quantity (thousands of CD players per week) A Market for an Illegal Good g Price ...to buyer Cost per unit of b ki f breaking the law... a S + CBL S Pc d c ...to seller b D D - CBL Qp Qc Quantity Harvests, Farm Prices, and F d Farm Revenues R MS1 Price (dollars per ton e s nne) MS0 Poor harvest 400 300 $1.5 billion 200 100 $3.0 billion $1.0 $1 0 billion D 25 0 5 10 15 20 Quantity (millions of tonnes per...
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This document was uploaded on 03/13/2014.

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