Deadweight Loss with a Tax
- Author:
- Russ Steponic
This animated applet shows the changes in consumer and producer surplus, tax revenue, and deadweight loss resulting from an indirect tax.
As the tax increases, what happens to the following quantities?
1. Equilibrium quantity
2. The price consumers pay
3. Consumer surplus
4. The price producers receive
5. Producer surplus
6. Tax revenue
7. Deadweight loss