ECON 2030 Chapter : Feb 15 ECON
Document Summary
Today"s menu: wednesday 15 february 2012: business, practice problems, exams returned and reviewed in lab today/friday, chapter 8: 1, 3, 7-13, 16, 20. Government taxes gas company, gas company taxes consumers who are voters. Excise tax: per unit tax, taxing number of unit being transacted collected from sellers. Sales tax: collected from consumer, value of transaction is getting taxes: elasticity, economic surplus (es): the total net benefit of engaging in an, motivation, tools economic transaction. Net benefit is benefit - cost: consumer surplus (cs): benefit to buyers, total net benefit to buyers. Cs = benefit (reservation price) cost (actual price). > cost, cs > 0: producer surplus (ps): benefit to seller, total net benefit to sellers.
