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What is one benefit to business if the government runs a surplus?
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- Give some examples of products that are likely to have little if any producer surplus and explain why.I know that the equilibrium is 8 and that is where the total surplus is maximized, however, I don't understand how to get the amount for consumer surplus and producer surplus when they maximize. How would I go about doing so?How to determine consumer surplus, producer surplus, tax revenue, economic surplus after tax?
- The market for soft drinks is perfectly competitive. Assume that the supply of soft drinks is point elastic and upward sloping. The government imposes a consumer tax on soft drinks. If point elasticity of demand is inelastic, is the deadweight loss generated by the tax higher or lower relative to where the point elasticity of demand is elastic? Explain why.Suppose a commodity tax is legally placed on paper manufacturers. How the tax is split between the consumers and producers depends on Group of answer choices the excludability of paper. who the law says must pay the tax. the elasticities of supply and demand. the politicians who drafted the tax. PreviousNextWhat would happen if Texas collects less taxes and generates less revenue?