16 May WHAT HAPPENS TO THE TAX REVENUE WHEN THE TAX SIZE IS INCREASED?
Answer the following questions in your words. Do not copy from any outside sources or textbook. All your assignments are scanned through a software called turnitin. If you copy, I will get the report. If your similarity report is more than 20% then you will receive zero. Also do not write questions in your assignment as it increases the similarity report.
What happens in the market after the taxes are imposed? Make sure to discuss its impact on consumer surplus, producer surplus and total surplus.
What happens to the tax revenue when the tax size is increased? For example, if the tax size is increased from small to medium to large.
Explain what is deadweight loss. When does the deadweight loss increase and when does it decrease? Make sure to take into account the Laffer curve.
How does elasticity affect the tax revenue and deadweight loss? Explain in detail.
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