What happens in the market after the taxes are imposed
Answer the following questions in your words. Do not copy from any outside sources or textbook. All your assignments are scanned through a software called turnitin. If you copy, I will get the report. If your similarity report is more than 20% then you will receive zero. Also do not write questions in your assignment as it increases the similarity report.
What happens in the market after the taxes are imposed? Make sure to discuss its impact on consumer surplus, producer surplus and total surplus.
What happens to the tax revenue when the tax size is increased? For example, if the tax size is increased from small to medium to large.
Explain what is deadweight loss. When does the deadweight loss increase and when does it decrease? Make sure to take into account the Laffer curve.
How does elasticity affect the tax revenue and deadweight loss? Explain in detail.
…………………….Answer preview………………………….
Taxes have an effect on both supply and demand. When taxes are imposed it is expected that those involved in the transaction of the product being taxed will take the responsibility of paying for the tax. Taxation will cause the producers of the products to raise the prices of their products so that the responsibility does not weigh heavily on them. In the raise of the price, there is one party that will pay higher than the other. The consumers have to now pay more than they are used to for the products and the producers receive lower returns due to possibly……………………
APA
613 words
