Describe in detail how taxes impact consumer and producer surplus. In your discussion, also show graphically, the before and after-tax impact. Why must local governments pay attention to the types of products they tax. Describe in detail how the elasticity of these products impacts the expected revenue to be generated by these local Governments Trade makes both consumers and producers better off. Explain this in detail with all appropriate graphs. How has your study of Economics so far provided insight to the business world around you? Explain why trade increases total surplus. In your analysis, show how this true from both importing and exporting goods and services. Please be thorough. How does the elasticity of a product impact Corporate Revenue? Why is it important for companies to understand this concept? What are Externalities? What some strategies the Government may use to address both positive and negative externalities What are Public Goods and Common resources? Describe in your analysis the issues that governments face as a result of these goods

Taxation is the cycle by which a government or other taxing power powers a financial charge or duty on individuals, businesses, or various elements to fund public expenditures and government functions.Note: Only first question will be answered as per the bartleby guidelineThe government receives its funding from taxes.The region above price and below the demand curve is known as consumer surplus. Above the supply curve and below the pricing curve is the producer surplus. The market is in equilibrium and the overall surplus is maximized prior to taxes. The market is not in equilibrium after taxes, and because of the deadweight loss caused by taxes, the overall surplus is not maximized. It is obvious that this tax revenue will reduce the surplus of both producers and consumers since the government will be taking money out of the total surplus for taxes. Thus, there is a decline in both producer and consumer excess.Graph : Market before taxGraph : Market after taxIt is evident that both the producer and consumer surpluses decline after taxes.Both the consumer and producer surplus will decline due to the taxation and thus there will be a deadweight loss in the market.

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Describe in detail how taxes impact consumer and producer surplus. In your discussion, also show graphically, the before and after-tax impact.

Why must local governments pay attention to the types of products they tax. Describe in detail how the elasticity of these products impacts the expected revenue to be generated by these local Governments

Trade makes both consumers and producers better off. Explain this in detail with all appropriate graphs.

How has your study of Economics so far provided insight to the business world around you?

Explain why trade increases total surplus. In your analysis, show how this true from both importing and exporting goods and services. Please be thorough.

How does the elasticity of a product impact Corporate Revenue? Why is it important for companies to understand this concept?

What are Externalities? What some strategies the Government may use to address both positive and negative externalities

What are Public Goods and Common resources? Describe in your analysis the issues that governments face as a result of these goods

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