Taxes

1. Microeconomics
Chapter 8
!
Taxation

2. Subsidy

3. Subsidy
opposite of a
tax

4. 100
90
80
70
60
50
40
30
20
10
0
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price

5. 100
90
80
70
60
50
40
30
20
10
0
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand

6. 100
90
80
70
60
50
40
30
20
10
0
Supply
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand

7. 100
90
80
70
60
50
40
30
20
10
0
Supply
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand

8. 100
90
80
70
60
50
40
30
20
10
0
Supply
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand

9. 100
90
80
70
60
50
40
30
20
10
0
Supply
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand

10. 100
90
80
70
60
50
40
30
20
10
0
Supply
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand

11. 100
90
80
70
60
50
40
30
20
10
0
Supply
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand

12. 100
90
80
70
60
50
40
30
20
10
0
Supply
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand

13. 100
90
80
70
60
50
40
30
20
10
0
Supply
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand
Consumer
Surplus

14. 100
90
80
70
60
50
40
30
20
10
0
Supply
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand
Consumer
Surplus

15. 100
90
80
70
60
50
40
30
20
10
0
Supply
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand
Consumer
Surplus
Producer
Surplus

16. 100
90
80
70
60
50
40
30
20
10
0
Supply
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand
Consumer
Surplus
Producer
Surplus
Government
Price
Minimum

17. 100
90
80
70
60
50
40
30
20
10
0
Supply
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand
Consumer
Surplus
Producer
Surplus
Government
Price
Minimum

18. 100
90
80
70
60
50
40
30
20
10
0
Supply
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand
Consumer
Surplus
Producer
Surplus
Government
Price
Minimum

19. 100
90
80
70
60
50
40
30
20
10
0
Supply
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand
Consumer
Surplus
Producer
Surplus
Government
Price
Minimum
Loss

20. 100
90
80
70
60
50
40
30
20
10
0
Supply
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand
Consumer
Surplus
Producer
Surplus
Government
Price
Minimum
Loss
Loss

21. 100
90
80
70
60
50
40
30
20
10
0
Supply
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand
Consumer
Surplus
Producer
Surplus
Government
Price
Minimum
Loss
Loss

22. 100
90
80
70
60
50
40
30
20
10
0
Supply
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand
Consumer
Surplus
Producer
Surplus
Government
Price
Minimum
Loss
Loss

23. 100
90
80
70
60
50
40
30
20
10
0
Supply
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand
Consumer
Surplus
Producer
Surplus
Government
Price
Minimum
Loss
Loss

24. 100
90
80
70
60
50
40
30
20
10
0
Supply
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand
Consumer
Surplus
Producer
Surplus
Government
Price
Minimum
Loss
Loss

25. 100
90
80
70
60
50
40
30
20
10
0
Supply
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand
Consumer
Surplus
Producer
Surplus
Government
Price
Minimum Consumer Loss
Producer Gain Loss
Loss

26. 100
90
80
Price
70
Minimum Consumer Loss
60
50
40
30
20
10
0
Supply
Producer Gain Loss
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand
Consumer
Surplus
Producer
Surplus
Government
Consumer Surplus Area
Before = 125
After = 45
Change = Lose 80
Loss

27. 100
90
80
70
60
50
40
30
20
10
0
Supply
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand
Consumer
Surplus
Producer
Surplus
Consumer Surplus Area
Before = 125
After = 45
Change = Lose 80
Producer Surplus Area
Before = 125
After = 165
Change = Gain 40
Government
Price
Minimum Consumer Loss
Producer Gain Loss
Loss

28. 100
90
80
70
60
50
40
30
20
10
0
Supply
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Minimum Price
Demand
Consumer
Surplus
Producer
Surplus
Consumer Surplus Area
Before = 125
After = 45
Change = Lose 80
Producer Surplus Area
Before = 125
After = 165
Change = Gain 40
Total Surplus Area
Before = 250
After = 210
Deadweight Loss = 40
Government
Price
Minimum Consumer Loss
Producer Gain Loss
Loss

29. 100
90
80
70
60
50
40
30
20
10
0
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Government Maximum Price

30. Government Maximum Price
100
90
80
70
60
50
40
30
20
10
0
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand

31. Government Maximum Price
100
90
80
70
60
50
40
30
20
10
0
Supply
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand

32. Government Maximum Price
100
90
80
70
60
50
40
30
20
10
0
Supply
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand

33. Government Maximum Price
100
90
80
70
60
50
40
30
20
10
0
Supply
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand

34. Government Maximum Price
100
90
80
70
60
50
40
30
20
10
0
Supply
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand

35. Government Maximum Price
100
90
80
70
60
50
40
30
20
10
0
Supply
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand

36. Government Maximum Price
100
90
80
70
60
50
40
30
20
10
0
Supply
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand

37. Government Maximum Price
100
90
80
70
60
50
40
30
20
10
0
Supply
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand

38. Government Maximum Price
100
90
80
70
60
50
40
30
20
10
0
Supply
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand
Consumer
Surplus

39. Government Maximum Price
100
90
80
70
60
50
40
30
20
10
0
Supply
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand
Consumer
Surplus

40. Government Maximum Price
100
90
80
70
60
50
40
30
20
10
0
Supply
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand
Consumer
Surplus
Producer
Surplus

41. 100
90
80
70
60
50
40
30
20
10
0
Supply
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand
Consumer
Surplus
Producer
Surplus
Government
Price
Maximum
Government Maximum Price

42. 100
90
80
70
60
50
40
30
20
10
0
Supply
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand
Consumer
Surplus
Producer
Surplus
Government
Price
Maximum
Government Maximum Price

43. 100
90
80
70
60
50
40
30
20
10
0
Supply
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand
Consumer
Surplus
Producer
Surplus
Government
Price
Maximum
Government Maximum Price

44. 100
90
80
70
60
50
40
30
20
10
0
Supply
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand
Consumer
Surplus
Producer
Surplus
Government
Price
Maximum
Government Maximum Price

45. Government Maximum Price
100
90
80
70
60
50
40
30
20
10
0
Supply
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand
Consumer
Surplus
Producer
Surplus
Government
Price
Maximum
Loss

46. Government Maximum Price
100
90
80
70
60
50
40
30
20
10
0
Supply
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand
Consumer
Surplus
Producer
Surplus
Government
Price
Maximum
Loss
Loss

47. Government Maximum Price
100
90
80
70
60
50
40
30
20
10
0
Supply
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand
Consumer
Surplus
Producer
Surplus
Government
Price
Maximum
Loss
Loss

48. Government Maximum Price
100
90
80
70
60
50
40
30
20
10
0
Supply
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand
Consumer
Surplus
Producer
Surplus
Government
Price
Maximum
Loss
Loss

49. Government Maximum Price
100
90
80
70
60
50
40
30
20
10
0
Supply
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand
Consumer
Surplus
Producer
Surplus
Government
Price
Maximum
Loss
Loss

50. Government Maximum Price
100
90
80
70
60
50
40
30
20
10
0
Supply
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand
Consumer
Surplus
Producer
Surplus
Government
Price
Maximum
Consumer Gain
Producer Loss
Loss
Loss

51. Government Maximum Price
100
90
80
70
60
50
40
30
20
10
0
Supply
Consumer Gain
Producer Loss
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand
Consumer
Surplus
Producer
Surplus
Government
Price
Maximum
Consumer Surplus Area
Before = 125
After = 140
Change = Gain 15
Loss
Loss

52. Government Maximum Price
100
90
80
70
60
50
40
30
20
10
0
Supply
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand
Consumer
Surplus
Producer
Surplus
Consumer Surplus Area
Before = 125
After = 140
Change = Gain 15
Producer Surplus Area
Before = 125
After = 20
Change = Loss 105
Government
Price
Maximum
Consumer Gain
Producer Loss
Loss
Loss

53. Government Maximum Price
100
90
80
70
60
50
40
30
20
10
0
Supply
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Demand
Consumer
Surplus
Producer
Surplus
Consumer Surplus Area
Before = 125
After = 140
Change = Gain 15
Producer Surplus Area
Before = 125
After = 20
Change = Loss 105
Total Surplus Area
Before = 250
After = 160
Deadweight Loss = 90
Government
Price
Maximum
Consumer Gain
Producer Loss
Loss
Loss

54. 100
90
80
70
60
50
40
30
20
10
0
Supply1
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Supply Shift
Demand

55. 100
90
80
70
60
50
40
30
20
10
0
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Supply Shift
Demand
Consumer
Surplus
Supply1

56. 100
90
80
70
60
50
40
30
20
10
0
Consumer
Surplus
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Supply Shift
Demand
Producer
Surplus
Supply1

57. 100
90
80
70
60
50
40
30
20
10
0
Consumer
Surplus
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Supply Shift
Demand
Producer
Surplus
Supply2
Supply1

58. 100
90
80
70
60
50
40
30
20
10
0
Consumer
Surplus
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Supply Shift
Demand
Producer
Surplus
Supply2
Supply1

59. 100
90
80
70
60
50
40
30
20
10
0
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Supply Shift
Demand
Supply2
Supply1

60. 100
90
80
70
60
50
40
30
20
10
0
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Supply Shift
Demand
Consumer
Surplus
Supply2
Supply1

61. 100
90
80
70
60
50
40
30
20
10
0
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Supply Shift
Demand
Consumer
Surplus
Producer
Surplus
Supply2
Supply1

62. 100
90
80
70
60
50
40
30
20
10
0
Supply2
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Supply Shift
Demand
Consumer
Surplus
Producer
Surplus
Total Surplus
Before = 250
After = 90
Change = Loss 160
Supply1

63. 100
90
80
70
60
50
40
30
20
10
0
Supply2
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Supply Shift
Demand
Consumer
Surplus
Producer
Surplus
Total Surplus
Before = 250
After = 90
Change = Loss 160
Supply1

64. 100
90
80
70
60
50
40
30
20
10
0
Supply2
0 1 2 3 4 5 6 7 8 9 10
Price
Quantity
Supply Shift
Demand
Consumer
Surplus
Producer
Surplus
Total Surplus
Before = 250
After = 90
Change = Loss 160
Supply1

65. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
0 1 2 3 4 5 6 7 8 9 10
SR
Q

66. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
0 1 2 3 4 5 6 7 8 9 10
SR
Q

67. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
0 1 2 3 4 5 6 7 8 9 10
SR
Q

68. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
0 1 2 3 4 5 6 7 8 9 10
SR
Q
Buyer
Surplus

69. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
0 1 2 3 4 5 6 7 8 9 10
SR
Q
Buyer
Surplus

70. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
0 1 2 3 4 5 6 7 8 9 10
SR
Q
Buyer
Surplus
Seller
Surplus

71. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
0 1 2 3 4 5 6 7 8 9 10
SR
Q
Buyer
Surplus
Minimum
Price
Seller
Surplus

72. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
0 1 2 3 4 5 6 7 8 9 10
SR
Q
Buyer
Surplus
Minimum
Price
Seller
Surplus

73. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
0 1 2 3 4 5 6 7 8 9 10
SR
Q
Buyer
Surplus
Minimum
Price
Seller
Surplus

74. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
Buyer
Surplus
Minimum
Price
Seller
Surplus
0 1 2 3 4 5 6 7 8 9 10
SR
Qd Q

75. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
Buyer
Surplus
Minimum
Price
Seller
Surplus
0 1 2 3 4 5 6 7 8 9 10
SR
Qd Q

76. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
Buyer
Surplus
Minimum
Price
Seller
Surplus
0 1 2 3 4 5 6 7 8 9 10
SR
Qd Q

77. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
Buyer
Surplus
Minimum
Price
Seller
Surplus
0 1 2 3 4 5 6 7 8 9 10
SR
Qd Qs Q

78. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
Buyer
Surplus
Minimum
Price
Seller
Surplus
0 1 2 3 4 5 6 7 8 9 10
SR
Surplus Qd Qs Q

79. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
Buyer
Surplus
Minimum
Price
Seller
Surplus
0 1 2 3 4 5 6 7 8 9 10
SR
Surplus Qd 7-3 = 4 Qs Q

80. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
Buyer
Surplus
Minimum
Price
Seller
Surplus
0 1 2 3 4 5 6 7 8 9 10
SR
Surplus Qd 7-3 = 4 Qs Q

81. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
A
Buyer
Surplus
Minimum
Price
Seller
Surplus
0 1 2 3 4 5 6 7 8 9 10
SR
Surplus Qd 7-3 = 4 Qs Q

82. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
A
B Buyer
Surplus
Minimum
Price
Seller
Surplus
0 1 2 3 4 5 6 7 8 9 10
SR
Surplus Qd 7-3 = 4 Qs Q

83. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
A
B
C
Buyer
Surplus
Minimum
Price
Seller
Surplus
0 1 2 3 4 5 6 7 8 9 10
SR
Surplus Qd 7-3 = 4 Qs Q

84. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
A
B
C
D
Buyer
Surplus
Minimum
Price
Seller
Surplus
0 1 2 3 4 5 6 7 8 9 10
SR
Surplus Qd 7-3 = 4 Qs Q

85. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
A
B
C
Buyer
Surplus
D E
Minimum
Price
Seller
Surplus
0 1 2 3 4 5 6 7 8 9 10
SR
Surplus Qd 7-3 = 4 Qs Q

86. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
A
B
C
Buyer
Surplus
D E
F
Minimum
Price
Seller
Surplus
0 1 2 3 4 5 6 7 8 9 10
SR
Surplus Qd 7-3 = 4 Qs Q

87. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
A
B
C
Buyer
Surplus
D E
F
Minimum
Price
Seller
Surplus
0 1 2 3 4 5 6 7 8 9 10
SR
Surplus Qd 7-3 = 4 Qs Q

88. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
A
B
C
D E
F
Minimum
Price
Seller
Surplus
0 1 2 3 4 5 6 7 8 9 10
SR
Surplus Qd 7-3 = 4 Qs Q

89. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
A
B
C
D E
F
Minimum
Price
Seller
Surplus
0 1 2 3 4 5 6 7 8 9 10
SR
Q
Buyer
Surplus
Surplus Qd 7-3 = 4 Qs

90. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
A
B
C
D E
F
Minimum
Price
Seller
Surplus
0 1 2 3 4 5 6 7 8 9 10
SR
Q
Buyer
Surplus
Surplus Qd 7-3 = 4 Qs

91. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
A
B
C
Seller
Surplus
D E
F
Minimum
Price
0 1 2 3 4 5 6 7 8 9 10
SR
Q
Buyer
Surplus
Surplus Qd 7-3 = 4 Qs

92. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
A
B
C
D E
F
0 1 2 3 4 5 6 7 8 9 10
SR
Q
Buyer
Surplus
Surplus Qd 7-3 = 4 Qs
Buyers
Lose C to
deadweight loss
and lose B to
Minimum
Sellers
Price
Seller
Surplus

93. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
A
B
C
D E
F
0 1 2 3 4 5 6 7 8 9 10
SR
Q
Buyer
Surplus
Surplus Qd 7-3 = 4 Qs
Buyers
Lose C to
deadweight loss
and lose B to
Sellers
Sellers
Lose E to
deadweight loss
but gain B from
Buyers
Minimum
Price
Seller
Surplus

94. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
A
B
C
D E
F
0 1 2 3 4 5 6 7 8 9 10
SR
Q
Buyer
Surplus
Surplus Qd 7-3 = 4 Qs
Buyers
Lose C to
deadweight loss
and lose B to
Sellers
Sellers
Lose E to
deadweight loss
but gain B from
Buyers
A =( (100-70) x
3) ÷ 2 = 45
B= 20 x 3 = 60
C = (70-50) x
(5-3) ÷2 =20
D = 60
E = 20
F = 45
Minimum
Price
Seller
Surplus

95. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
0 1 2 3 4 5 6 7 8 9 10
SR
Q

96. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
0 1 2 3 4 5 6 7 8 9 10
SR
Q

97. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
0 1 2 3 4 5 6 7 8 9 10
SR
Q

98. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
0 1 2 3 4 5 6 7 8 9 10
SR
Q

99. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
0 1 2 3 4 5 6 7 8 9 10
SR
Q
Buyer
Surplus

100. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
0 1 2 3 4 5 6 7 8 9 10
SR
Q
Buyer
Surplus

101. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
0 1 2 3 4 5 6 7 8 9 10
SR
Q
Buyer
Surplus
Seller
Surplus

102. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
0 1 2 3 4 5 6 7 8 9 10
SR
Q
Buyer
Surplus
Maximum
Price
Seller
Surplus

103. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
0 1 2 3 4 5 6 7 8 9 10
SR
Q
Buyer
Surplus
Maximum
Price
Seller
Surplus

104. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
0 1 2 3 4 5 6 7 8 9 10
SR
Q
Buyer
Surplus
Maximum
Price
Seller
Surplus

105. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
Buyer
Surplus
Maximum
Price
Seller
Surplus
0 1 2 3 4 5 6 7 8 9 10
SR
Qs Q

106. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
Buyer
Surplus
Maximum
Price
Seller
Surplus
0 1 2 3 4 5 6 7 8 9 10
SR
Qs Q

107. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
Buyer
Surplus
Maximum
Price
Seller
Surplus
0 1 2 3 4 5 6 7 8 9 10
SR
Qs Q

108. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
Buyer
Surplus
Maximum
Price
Seller
Surplus
0 1 2 3 4 5 6 7 8 9 10
SR
Qs Qd Q

109. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
Buyer
Surplus
Maximum
Price
Seller
Surplus
0 1 2 3 4 5 6 7 8 9 10
SR
Qs Qd Q

110. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
Buyer
Surplus
Maximum
Price
Seller
Surplus
0 1 2 3 4 5 6 7 8 9 10
SR
Shortage Qs Qd Q

111. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
Buyer
Surplus
Maximum
Price
Seller
Surplus
0 1 2 3 4 5 6 7 8 9 10
SR
Shortage Qs 8-2 = 6 Qd Q

112. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
Maximum
Price
Seller
Surplus
0 1 2 3 4 5 6 7 8 9 10
SR
Shortage Qs 8-2 = 6 Qd Q

113. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
Maximum
Price
Seller
Surplus
0 1 2 3 4 5 6 7 8 9 10
SR
Shortage Qs 8-2 = 6 Qd Q

114. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
A
Maximum
Price
Seller
Surplus
0 1 2 3 4 5 6 7 8 9 10
SR
Shortage Qs 8-2 = 6 Qd Q

115. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
A
B
Maximum
Price
Seller
Surplus
0 1 2 3 4 5 6 7 8 9 10
SR
Shortage Qs 8-2 = 6 Qd Q

116. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
A
B
C
Maximum
Price
Seller
Surplus
0 1 2 3 4 5 6 7 8 9 10
SR
Shortage Qs 8-2 = 6 Qd Q

117. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
A
B
C
D
Maximum
Price
Seller
Surplus
0 1 2 3 4 5 6 7 8 9 10
SR
Shortage Qs 8-2 = 6 Qd Q

118. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
A
B
C
D E
Maximum
Price
Seller
Surplus
0 1 2 3 4 5 6 7 8 9 10
SR
Shortage Qs 8-2 = 6 Qd Q

119. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
A
B
C
D E
Seller
Surplus
F
Maximum
Price
0 1 2 3 4 5 6 7 8 9 10
SR
Shortage Qs 8-2 = 6 Qd Q

120. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
A
B
C
D E
Seller
Surplus
F
Maximum
Price
0 1 2 3 4 5 6 7 8 9 10
SR
Shortage Qs 8-2 = 6 Qd Q

121. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
A
B
C
D E
Seller
Surplus
F
Maximum
Price
0 1 2 3 4 5 6 7 8 9 10
SR
Shortage Qs 8-2 = 6 Qd Q

122. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
A
B
C
D E
F
0 1 2 3 4 5 6 7 8 9 10
SR
Shortage Qs 8-2 = 6 Qd Q
Buyers
Lose C to
deadweight loss
but gain D from
Sellers
Maximum
Price
Seller
Surplus

123. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
A
B
C
D E
F
0 1 2 3 4 5 6 7 8 9 10
SR
Shortage Qs 8-2 = 6 Qd Q
Buyers
Lose C to
deadweight loss
but gain D from
Sellers
Sellers
Lose E to
deadweight loss
and lose D to
buyers
Maximum
Price
Seller
Surplus

124. 100
90
80
70
60
50
40
30
20
10
0
Supply
Demand
A
B
C
D E
F
0 1 2 3 4 5 6 7 8 9 10
SR
Shortage Qs 8-2 = 6 Qd Q
Buyers
Lose C to
deadweight loss
but gain D from
Sellers
Sellers
Lose E to
deadweight loss
and lose D to
buyers
A = 20
B = 60
C = 45
D = 60
E = 45
F = 20
Maximum
Price
Seller
Surplus

125. 100
90
80
70
60
50
40
30
20
10
0
Tax Analysis
Supply
with no tax
Demand
0 1 2 3 4 5 6 7 8 9 10

126. 100
90
80
70
60
50
40
30
20
10
0
Tax Analysis
Supply
with no tax
Demand
Buyer
Surplus
0 1 2 3 4 5 6 7 8 9 10

127. 100
90
80
70
60
50
40
30
20
10
0
Tax Analysis
Supply
with no tax
Demand
Buyer
Surplus
Seller
Surplus
0 1 2 3 4 5 6 7 8 9 10

128. 100
90
80
70
60
50
40
30
20
10
0
Tax Analysis
Supply
with no tax
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

129. 100
90
80
70
60
50
40
30
20
10
0
Tax Analysis
Supply
with no tax
Tax of 40 SAR
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

130. 100
90
80
70
60
50
40
30
20
10
0
Tax Analysis
Supply
with no tax
40
Tax of 40 SAR
Demand
40
40
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

131. 100
90
80
70
60
50
40
30
20
10
0
Tax Analysis
Supply
with no tax
40
Tax of 40 SAR
Demand
Supply
with 40 SAR tax
40
40
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

132. 100
90
80
70
60
50
40
30
20
10
0
Tax Analysis
Supply
with no tax
Tax of 40 SAR
Demand
Supply
with 40 SAR tax
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

133. 100
90
80
70
60
50
40
30
20
10
0
Tax Analysis
Supply
with no tax
Tax of 40 SAR
Demand
Supply
with 40 SAR tax
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

134. 100
90
80
70
60
50
40
30
20
10
0
Tax Analysis
Supply
with no tax
Tax of 40 SAR
Demand
Supply
with 40 SAR tax
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

135. 100
90
80
70
60
50
40
30
20
10
0
Tax Analysis
Supply
with no tax
Tax of 40 SAR
Demand
Supply
with 40 SAR tax
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

136. 100
90
80
70
60
50
40
30
20
10
0
Tax Analysis
Supply
with no tax
Tax of 40 SAR
Demand
Supply
with 40 SAR tax
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

137. 100
90
80
70
60
50
40
30
20
10
0
Tax Analysis
Supply
with no tax
Tax of 40 SAR
Demand
Supply
with 40 SAR tax
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

138. 100
90
80
70
60
50
40
30
20
10
0
Tax Analysis
Supply
with no tax
Tax of 40 SAR
Demand
Supply
with 40 SAR tax
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

139. 100
90
80
70
60
50
40
30
20
10
0
Tax Analysis
Supply
with no tax
Tax of 40 SAR
Demand
Supply
with 40 SAR tax
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

140. 100
90
80
70
60
50
40
30
20
10
0
Tax Analysis
Supply
with no tax
Tax of 40 SAR
Demand
A
Supply
with 40 SAR tax
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

141. 100
90
80
70
60
50
40
30
20
10
0
Tax Analysis
Supply
with no tax
Tax of 40 SAR
Demand
A
B
Supply
with 40 SAR tax
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

142. 100
90
80
70
60
50
40
30
20
10
0
Tax Analysis
Supply
with no tax
Tax of 40 SAR
Demand
A
B
Supply
with 40 SAR tax
C
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

143. 100
90
80
70
60
50
40
30
20
10
0
Tax Analysis
Supply
with no tax
Tax of 40 SAR
Demand
A
B
Supply
with 40 SAR tax
C
D
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

144. 100
90
80
70
60
50
40
30
20
10
0
Tax Analysis
Supply
with no tax
Tax of 40 SAR
Demand
A
B
Supply
with 40 SAR tax
C
D E
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

145. 100
90
80
70
60
50
40
30
20
10
0
Tax Analysis
Supply
with no tax
Tax of 40 SAR
Demand
A
B
Supply
with 40 SAR tax
C
D E
F
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

146. 100
90
80
70
60
50
40
30
20
10
0
Tax Analysis
Supply
with no tax
Tax of 40 SAR
Demand
A
B
Supply
with 40 SAR tax
C
D E
F
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

147. 100
90
80
70
60
50
40
30
20
10
0
Tax Analysis
Supply
with no tax
Tax of 40 SAR
Demand
A
B
Supply
with 40 SAR tax
C
D E
F
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

148. 100
90
80
70
60
50
40
30
20
10
0
Tax Analysis
Supply
with no tax
Tax of 40 SAR
Demand
A
B
Supply
with 40 SAR tax
C
D E
F
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

149. 100
90
80
70
60
50
40
30
20
10
0
Tax Analysis
Supply
with no tax
Taxes Tax of 40 SAR
Demand
A
B
Supply
with 40 SAR tax
C
D E
F
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

150. 100
90
80
70
60
50
40
30
20
10
0
Supply
with no tax
Taxes Tax of 40 SAR
Demand
A
B
C
D E
F
0 1 2 3 4 5 6 7 8 9 10
Buyers
Lose C to
deadweight loss
and lose B to
taxes
Tax Analysis
Supply
with 40 SAR tax
Tax on Seller with shift Supply curve up by the amount of the tax

151. 100
90
80
70
60
50
40
30
20
10
0
Supply
with no tax
Taxes Tax of 40 SAR
Demand
A
B
C
D E
F
0 1 2 3 4 5 6 7 8 9 10
Buyers
Lose C to
deadweight loss
and lose B to
taxes
Sellers
Lose E to
deadweight loss
and lose D to
taxes
Tax Analysis
Supply
with 40 SAR tax
Tax on Seller with shift Supply curve up by the amount of the tax

152. 100
90
80
70
60
50
40
30
20
10
0
Supply
with no tax
Tax of 40 SAR
Demand
A
B
C
Taxes
D E
F
0 1 2 3 4 5 6 7 8 9 10
Buyers
Lose C to
deadweight loss
and lose B to
taxes
Sellers
Lose E to
deadweight loss
and lose D to
taxes
Tax Analysis
Supply
with 40 SAR tax
Government
gains B from
buyers and D
from sellers
Tax on Seller with shift Supply curve up by the amount of the tax