Deadweight Loss With A Tax for economics

What happens to consumer surplus and producer surplus when a tax is imposed. Useful for micro economics classes.

http://www.MyBookSucks.Com "Party More Study Less"

Category:

Education

Tags:

• microeconomics
• economics

[GanjaGarb]

Great clip! However, I was wondering how you would tell who bears the brunt of the tax, consumers or producers?

[economicsfun]

@GanjaGarb That is a great question. It depends on the elasticity of demand and supply. If demand is very inelastic consumers can't easily switch to other goods, so they will bear the brunt. If demand is elastic (consumer can switch to another good easily), then they switch and producers bear the brunt of the tax. Inelastic producers can pass on the tax and elastic producers can't pass on the tax.

[economicsfun]

Well, those are the names on the crayons used to color the image. As I look at it the moss may be closer to fern.

DL

[skinnycant123]

its the green area...actually thats moss. its the area thats in orange....actually thats tangarine haha

[orientalcuckoo]

@skinnycant123 hehe

so the brown area...mocha

[bobichina]

Your staff is extremely good. The only shortcoming is your soft voice making the listeners a little bit sleepy..... If you can speak with different tones to draw more attention,maybe stronger voice and tone, your lecture is PERFECT. 

[prakashmittal]

very nice ,well done job.great!!!!!

[syntheticstyling]

wish i found this earlier ...

[pljehyun]

i believe that's more of a stone than a grey

[jamoss11]

Awesome, thanks a lot.