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Joseph Napolitano
on Nov 17, 2024

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When a tax is imposed on sellers, consumer surplus and producer surplus both decrease.

Consumer Surplus

Consumer surplus is the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually do pay.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive.

  • Perceive the ramifications of taxation on market equilibration, especially concerning shifts in consumer surplus, producer surplus, and governmental proceeds.
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MJ
Marion JohnstonNov 17, 2024
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