Chapter 8 Flashcards
1
Q
governments tax revenue
A
= (the size of the tax)(the quantity of the good sold)
2
Q
fall in total surplus and deadweight loss of the tax
A
3
Q
deadweight loss
A
the fall in total surplus that results from a market disortion
4
Q
inelastic and elastic supply and demand size of tax
A
inelastic supply and demand: small tax
elastic supply and demand: tax is large
