The document analyzes the effects of a tax on sellers. It shows the supply and demand curves shifting as a result of a 40 SAR tax on sellers. This results in deadweight loss for both buyers and sellers, as buyers lose areas B and C while sellers lose areas D and E. The government gains the tax amount of areas B and D. In total, buyers and sellers are worse off by the deadweight loss areas C and E, while the government gains tax revenue of areas B and D.

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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