Consumer Surplus, Producer Surplus, Government Revenue

Related BrainMass Solutions

• shift in consumer and producer surplus

  100485 Shift in Consumer and Producer Surplus 1) The government will tax a good for various reasons, resulting in a fall in equilibrium quality while the prices rise.

• Taxing consumables

  surplus after the tax g. total tax revenue to the government h. total surplus (consumer surplus + producer surplus + tax revenue) after the tax i. deadweight loss See attached 38.

• Consumer Surplus, Producer Surplus, Consumer Deadweight Loss, and Producer Deadweight Loss

  Draw out multiple supply/demand graphs and identify (in color) where you have: 1) Consumer Surplus, 2) Producer Surplus, 3) Consumer Deadweight Loss, and 4) Producer Deadweight Loss. I. What is consumer surplus?

• Demand and Supply Curve, Consumer Surplus and Producer Surplus, Deadweight Loss (DWL) and Tax

  So consumer surplus = 1/2*(14-7)*210 = 735 thousand$ The total benefit = consumer surplus + spending = 735+ 1470 = 2205 thousand$ c) However, the producer surplus is the area above supply curve (SS) AND below price level = the area (2) = 1/2*7*210 =

• Economics: Dead Weight Loss

  Consumer surplus=1/2*ED*AE=1/2*(600-0)*(900-600)=$90000 Producer surplus is given by area of the triangle OFG Producer surplus= area of triangle OFG = (1/2*FG*OG)=1/2*(600-0)*(150-0)=$45000 Government tax revenue=area of rectangle EFGD=(ED*EF)=(600

• deadweight loss

  does the tax revenue make up for the lost surplus? Please see the attached file. Correlate government revenue and deadweight loss.

• Tax revenue

  b) Producer surplus before tax = 0.5 x(6-2)x 200 = $400 Producer surplus after tax = 0.5 x (4-2) x 100 = $100 c) Consumer surplus before tax = 0.5 x(10-6)x200 = $400 Consumer surplus after tax = 0.5 x (10-8) x100 = $100 d) Tax revenue =

• Taxes and How They Affect Surplus

  523877 Taxes and How They Affect Surplus What happens to consumer and producer surplus when a good is taxed? Explain using the concept of deadweight loss.

• Producer surplus

  When the producer has no competition, he can raise the price such that part of the consumer surplus becomes producer surplus. The consumer surplus and producer surplus added together are the total surplus.