Tax Analysis
100

Supply
with no tax

90
80
70
60
50
40
30
20
10
0

Demand
0

1

2

3

4

5

6

7

8

9

10
Tax Analysis
100

Supply
with no tax

90
80

Buyer
Surplus

70
60
50
40
30
20
10
0

Demand
0

1

2

3

4

5

6

7

8

9

1...
Tax Analysis
100

Supply
with no tax

90
80

Buyer
Surplus

70
60
50
40

Seller
Surplus

30
20
10
0

Demand
0

1

2

3

4
...
Tax Analysis
100

Supply
with no tax

90
80
70
60
50
40
30
20
10
0

Demand
0

1

2

3

4

5

6

7

8

9

10

Tax on Seller...
Tax Analysis
100

Supply
with no tax

90
80
70
60

Tax of 40 SAR

50
40
30
20
10
0

Demand
0

1

2

3

4

5

6

7

8

9

1...
Tax Analysis
100

Supply
with no tax

90

40

80
70
60

40

50

Tax of 40 SAR

40
30

40

20
10
0

Demand
0

1

2

3

4

5...
Tax Analysis
100

Supply
with 40 SAR tax

90

Supply
with no tax

40

80
70
60

40

50

Tax of 40 SAR

40
30

40

20
10
0
...
Tax Analysis
100

Supply
with 40 SAR tax

90

Supply
with no tax

80
70
60

Tax of 40 SAR

50
40
30
20
10
0

Demand
0

1

...
Tax Analysis
100

Supply
with 40 SAR tax

90

Supply
with no tax

80
70
60

Tax of 40 SAR

50
40
30
20
10
0

Demand
0

1

...
Tax Analysis
100

Supply
with 40 SAR tax

90

Supply
with no tax

80
70
60

Tax of 40 SAR

50
40
30
20
10
0

Demand
0

1

...
Tax Analysis
100

Supply
with 40 SAR tax

90

Supply
with no tax

80
70
60

Tax of 40 SAR

50
40
30
20
10
0

Demand
0

1

...
Tax Analysis
100

Supply
with 40 SAR tax

90

Supply
with no tax

80
70
60

Tax of 40 SAR

50
40
30
20
10
0

Demand
0

1

...
Tax Analysis
100

Supply
with 40 SAR tax

90

Supply
with no tax

80
70
60

Tax of 40 SAR

50
40
30
20
10
0

Demand
0

1

...
Tax Analysis
100

Supply
with 40 SAR tax

90

Supply
with no tax

80
70
60

Tax of 40 SAR

50
40
30
20
10
0

Demand
0

1

...
Tax Analysis
100

Supply
with 40 SAR tax

90

Supply
with no tax

80
70
60

Tax of 40 SAR

50
40
30
20
10
0

Demand
0

1

...
Tax Analysis
100

Supply
with 40 SAR tax

90

Supply
with no tax

A

80
70
60

Tax of 40 SAR

50
40
30
20
10
0

Demand
0

...
Tax Analysis
100

Supply
with 40 SAR tax

90

Supply
with no tax

A

80
70

B

60

Tax of 40 SAR

50
40
30
20
10
0

Demand...
Tax Analysis
100

Supply
with 40 SAR tax

90

Supply
with no tax

A

80
70

B

60

C

Tax of 40 SAR

50
40
30
20
10
0

Dem...
Tax Analysis
100

Supply
with 40 SAR tax

90

Supply
with no tax

A

80
70

B

60

C

Tax of 40 SAR

50

D

40
30
20
10
0
...
Tax Analysis
100

Supply
with 40 SAR tax

90

Supply
with no tax

A

80
70

B

60

C

Tax of 40 SAR

50

E

D

40
30
20
10...
Tax Analysis
100

Supply
with 40 SAR tax

90

Supply
with no tax

A

80
70

B

60

C

Tax of 40 SAR

50

E

D

40
30
20

F...
Tax Analysis
100

Supply
with 40 SAR tax

90

Supply
with no tax

A

80
70

B

60

C

Tax of 40 SAR

50

E

D

40
30
20

F...
Tax Analysis
100

Supply
with 40 SAR tax

90

Supply
with no tax

A

80
70

B

60

C

Tax of 40 SAR

50

E

D

40
30
20

F...
Tax Analysis
100

Supply
with 40 SAR tax

90

Supply
with no tax

A

80
70

B

60

C

Tax of 40 SAR

50

E

D

40
30
20

F...
Tax Analysis
100

Supply
with 40 SAR tax

90

Supply
with no tax

A

80
70

B

60

C

Taxes

50

E

D

40

Tax of 40 SAR

...
Tax Analysis
100

Supply
with 40 SAR tax

90

Buyers
Lose C to
deadweight loss
and lose B to
taxes

Supply
with no tax

A
...
Tax Analysis
100

Supply
with 40 SAR tax

90

Buyers
Lose C to
deadweight loss
and lose B to
taxes

Supply
with no tax

A
...
Tax Analysis
100

Supply
with 40 SAR tax

90

Buyers
Lose C to
deadweight loss
and lose B to
taxes

Supply
with no tax

A
...
Tax Analysis
100

Supply
with 40 SAR tax

90

Buyers
Lose C to
deadweight loss
and lose B to
taxes

Supply
with no tax

A
...
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Lecture 8

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Lecture 8

  1. 1. Tax Analysis 100 Supply with no tax 90 80 70 60 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  2. 2. Tax Analysis 100 Supply with no tax 90 80 Buyer Surplus 70 60 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  3. 3. Tax Analysis 100 Supply with no tax 90 80 Buyer Surplus 70 60 50 40 Seller Surplus 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10
  4. 4. Tax Analysis 100 Supply with no tax 90 80 70 60 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  5. 5. Tax Analysis 100 Supply with no tax 90 80 70 60 Tax of 40 SAR 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  6. 6. Tax Analysis 100 Supply with no tax 90 40 80 70 60 40 50 Tax of 40 SAR 40 30 40 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  7. 7. Tax Analysis 100 Supply with 40 SAR tax 90 Supply with no tax 40 80 70 60 40 50 Tax of 40 SAR 40 30 40 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  8. 8. Tax Analysis 100 Supply with 40 SAR tax 90 Supply with no tax 80 70 60 Tax of 40 SAR 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  9. 9. Tax Analysis 100 Supply with 40 SAR tax 90 Supply with no tax 80 70 60 Tax of 40 SAR 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  10. 10. Tax Analysis 100 Supply with 40 SAR tax 90 Supply with no tax 80 70 60 Tax of 40 SAR 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  11. 11. Tax Analysis 100 Supply with 40 SAR tax 90 Supply with no tax 80 70 60 Tax of 40 SAR 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  12. 12. Tax Analysis 100 Supply with 40 SAR tax 90 Supply with no tax 80 70 60 Tax of 40 SAR 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  13. 13. Tax Analysis 100 Supply with 40 SAR tax 90 Supply with no tax 80 70 60 Tax of 40 SAR 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  14. 14. Tax Analysis 100 Supply with 40 SAR tax 90 Supply with no tax 80 70 60 Tax of 40 SAR 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  15. 15. Tax Analysis 100 Supply with 40 SAR tax 90 Supply with no tax 80 70 60 Tax of 40 SAR 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  16. 16. Tax Analysis 100 Supply with 40 SAR tax 90 Supply with no tax A 80 70 60 Tax of 40 SAR 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  17. 17. Tax Analysis 100 Supply with 40 SAR tax 90 Supply with no tax A 80 70 B 60 Tax of 40 SAR 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  18. 18. Tax Analysis 100 Supply with 40 SAR tax 90 Supply with no tax A 80 70 B 60 C Tax of 40 SAR 50 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  19. 19. Tax Analysis 100 Supply with 40 SAR tax 90 Supply with no tax A 80 70 B 60 C Tax of 40 SAR 50 D 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  20. 20. Tax Analysis 100 Supply with 40 SAR tax 90 Supply with no tax A 80 70 B 60 C Tax of 40 SAR 50 E D 40 30 20 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  21. 21. Tax Analysis 100 Supply with 40 SAR tax 90 Supply with no tax A 80 70 B 60 C Tax of 40 SAR 50 E D 40 30 20 F 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  22. 22. Tax Analysis 100 Supply with 40 SAR tax 90 Supply with no tax A 80 70 B 60 C Tax of 40 SAR 50 E D 40 30 20 F 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  23. 23. Tax Analysis 100 Supply with 40 SAR tax 90 Supply with no tax A 80 70 B 60 C Tax of 40 SAR 50 E D 40 30 20 F 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  24. 24. Tax Analysis 100 Supply with 40 SAR tax 90 Supply with no tax A 80 70 B 60 C Tax of 40 SAR 50 E D 40 30 20 F 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  25. 25. Tax Analysis 100 Supply with 40 SAR tax 90 Supply with no tax A 80 70 B 60 C Taxes 50 E D 40 Tax of 40 SAR 30 20 F 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  26. 26. Tax Analysis 100 Supply with 40 SAR tax 90 Buyers Lose C to deadweight loss and lose B to taxes Supply with no tax A 80 70 B 60 C Taxes 50 E D 40 Tax of 40 SAR 30 20 F 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  27. 27. Tax Analysis 100 Supply with 40 SAR tax 90 Buyers Lose C to deadweight loss and lose B to taxes Supply with no tax A 80 Sellers Lose E to deadweight loss and lose D to taxes 70 B 60 C Taxes 50 E D 40 Tax of 40 SAR 30 20 F 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  28. 28. Tax Analysis 100 Supply with 40 SAR tax 90 Buyers Lose C to deadweight loss and lose B to taxes Supply with no tax A 80 Sellers Lose E to deadweight loss and lose D to taxes 70 B 60 C Taxes 50 E D 40 Tax of 40 SAR Government gains B from buyers and D from sellers 30 20 F 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax
  29. 29. Tax Analysis 100 Supply with 40 SAR tax 90 Buyers Lose C to deadweight loss and lose B to taxes Supply with no tax A 80 70 B 60 Buyers C Sellers Taxes Tax of 40 SAR Total 30 20 0 250 After E D 40 D, E F 125 A 45 F 45 B&D 120 210 Change Taxes 50 A, B, C 125 Lose C 20 Lose B 60 Lose E 20 Lose D 60 Gain B 60 Gain D 60 40 Before Sellers Lose E to deadweight loss and lose D to taxes Government gains B from buyers and D from sellers F 10 0 Demand 0 1 2 3 4 5 6 7 8 9 10 Tax on Seller with shift Supply curve up by the amount of the tax

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