Asked by Jeremiah Miller on Jun 12, 2024
Verified
Refer to Figure 8-10. Suppose the government places a $3 tax per unit on this good. How much is total surplus after the tax is imposed?
Total Surplus
A measure combining the gains of consumers and producers, indicating the overall economic benefit derived from transactions.
Tax
A compulsory financial charge or levy imposed by a government on individuals or entities to fund public expenditures.
Good
A tangible item that is produced or manufactured for sale to consumers in the market.
- Acquire knowledge on how taxes levied by authorities influence the surplus of consumers, producers, and the aggregate surplus.
Verified Answer
EN
Ealan NisanovJun 16, 2024
Final Answer :
Total surplus is the sum of consumer surplus and producer surplus and tax revenue, which equals $180 + $90 + $180 = $450 after the tax is imposed.
Learning Objectives
- Acquire knowledge on how taxes levied by authorities influence the surplus of consumers, producers, and the aggregate surplus.