Textbook Notes (368,009)
Canada (161,558)
Economics (331)
ECON 1010 (72)
Chapter 3

ECON 1010 Chapter 3: Topics 15

3 Pages
Unlock Document

ECON 1010
Laura K.Brown

Oc98 ECON101 0 The introduction of any price floor unambiguously decreases the total surplus in the economy. The amount by which total surplus drops after the government imposes a price floor represents the deadweight loss in the economy. TAXATION Definition: Tax generates tax revenues that can be used to redistribute wealth within a society. Governments set tax to improve the distribution of income and opportunities across different population groups. Assumption: tax is levied on producer; same result applies if tax is levied on consumers. Consider a perunit tax imposed on each of the goods sold in the market. From the perspective of a supplier, the effect of this tax is similar to an increase in the production cost for each unit by exactly the amount of the tax marginal cost increases by exactly the tax amount.
More Less

Related notes for ECON 1010

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.