Question 5 Suppose that the government imposes a tax on ganethes Use the diagram below demand curve before tax Si S is the supply curve after the tax swer the questions D is the supply curve before tax and Price 18 12 10 10 12
Calculate with the tax
Quantity of cigarettes sold
Price made by the consumer
The tax
The total surplus in a market is a measure of the overall happiness of all market participants. It is equal to the sum of consumer and producer surpluses. A consumer's marginal benefit of each unit of consumption is also represented by each price along a demand curve.The distinction between what a client is willing to pay and what they spent for a product is thought because the consumer surplus. The distinction between the value|market value|value} and therefore the lowest price a producer is willing to require to make an honest is thought because the producer surplus.
Total Surplus = Consumer Surplus + Producer Surplus
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