Textbook Notes (368,800)
Canada (162,168)
Economics (923)
ECN 104 (387)
Chapter 8

Chapter 8 - Application: the Costs of Taxation
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Department
Economics
Course
ECN 104
Professor
Tsogbadral Galaabaatar
Semester
Fall

Description
Chapter 8A taxdrives a wedge between the price buyers pay and the price sellers receive raises the price buyers pay and lowers the price sellers receivereduces the quantity boughtsoldThese effects are the same whether the tax is imposed on buyers or sellers so we do not make this distinction in this chapter The Effects of a TaxNext we apply welfare economics to measure the gains and losses from a tax We determine consumer surplus CSproducer surplus PS tax revenueand total surplus with and without the tax Tax revenue can fund beneficial serviceseg education roads policeso we include it in total surplusWhat Determines the Size of the DWLWhich goods or services should govt taxto raise the revenue it needs One answerthose with the
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