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Lecture

MGEA02H3 Lecture Notes - Economic Surplus, Deadweight Loss


Department
Economics for Management Studies
Course Code
MGEA02H3
Professor
all

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Question!1!
If!the!price!of!good!is!$1!per!unit,!the!consumer!surplus!gained!by!this!consumer!
each!month!though!purchasing!it!will!be:!
!
Question!2!
What!should!be!the!flat!fee!to!be!charged!instead!of!paying!$1!per!unit?!
!
Question!3!
Suppose!government!imposes!a!tax!of!$3!per!unit!on!this!good!and!that!the!effect!of!
the!tax!falls!entirely!on!consumers.!The!deadweight!loss!associated!with!such!tax!
would!be?!
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