O When a per unit tax is imposed on the consumer of the product, identify how the consumer nd producer surplus changes, identify the deadweight loss and the amount of the total tax that vill be received by the government. Price PTax D PE F E P1 I H. K Dmi DMTAX QE QE2 Quantity aibicid eifigoh Consumer Surplus before tax = Producer Surplus before tax Consumer Surplus after tax = a Producer Surplus after tax = dig Total Tax = Deadweight Loss = %3D a,bicifih 7 b.) If the world price level of a product was above the domestic U.S. equilibrium price, diagram if the U.S. would import or export the product? Identify how the consumer surplus and producer
O When a per unit tax is imposed on the consumer of the product, identify how the consumer nd producer surplus changes, identify the deadweight loss and the amount of the total tax that vill be received by the government. Price PTax D PE F E P1 I H. K Dmi DMTAX QE QE2 Quantity aibicid eifigoh Consumer Surplus before tax = Producer Surplus before tax Consumer Surplus after tax = a Producer Surplus after tax = dig Total Tax = Deadweight Loss = %3D a,bicifih 7 b.) If the world price level of a product was above the domestic U.S. equilibrium price, diagram if the U.S. would import or export the product? Identify how the consumer surplus and producer
Chapter1: Making Economics Decisions
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Transcribed Image Text:O When a per unit tax is imposed on the consumer of the product, identify how the consumer
nd producer surplus changes, identify the deadweight loss and the amount of the total tax that
vill be received by the government.
Price
PTax
D
PE
F
E
P1
I
H.
K
Dmi
DMTAX
QE
QE2
Quantity
aibicid
eifigoh
Consumer Surplus before tax =
Producer Surplus before tax
Consumer Surplus after tax = a
Producer Surplus after tax =
dig
Total Tax =
Deadweight Loss =
%3D
a,bicifih
7
b.) If the world price level of a product was above the domestic U.S. equilibrium price, diagram
if the U.S. would import or export the product? Identify how the consumer surplus and producer
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