【導讀】Consumers,Copyright©2020byHarcourt,Inc.6277SeaHarborDrive,Orlando,Florida32887-6777.economics.economicwell-being.partinthemarket.product.topayforagood.actuallypaysforit.toPay...toPay...theDemandCurve...theDemandCurve...theDemandCurve.

　　

【正文】 oss and Tax Revenue Vary with the Size of the Tax... (a) Deadweight Loss Deadweight Loss 0 Tax Size Harcourt, Inc. items and derived items copyright 169。 2020 by Harcourt, Inc. Deadweight Loss and Tax Revenue Vary with the Size of the Tax... (b) Revenue (the Laffer curve) Tax Revenue 0 Tax Size Harcourt, Inc. items and derived items copyright 169。 2020 by Harcourt, Inc. Deadweight Loss and Tax Revenue Vary with the Size of the Tax ?As the size of a tax increases, its deadweight loss quickly gets larger. ?By contrast, tax revenue first rises with the size of a tax。 but then, as the tax gets larger, the market shrinks so much that tax revenue starts to fall. Harcourt, Inc. items and derived items copyright 169。 2020 by Harcourt, Inc. The Laffer Curve and SupplySide Economics ?The Laffer curve depicts the relationship between tax rates and tax revenue. ?Supplyside economics refers to the views of Reagan and Laffer who proposed that a tax cut would induce more people to work and thereby have the potential to increase tax revenues. Harcourt, Inc. items and derived items copyright 169。 2020 by Harcourt, Inc. Summary ?A tax on a good reduces the welfare of buyers and sellers of the good. And the reduction in consumer and producer surplus usually exceeds the revenues raised by the government. Harcourt, Inc. items and derived items copyright 169。 2020 by Harcourt, Inc. Summary ?The fall in total surplus – the sum of consumer surplus, producer surplus, and tax revenue – is called the deadweight loss of the tax. Harcourt, Inc. items and derived items copyright 169。 2020 by Harcourt, Inc. Summary ?Taxes have a deadweight loss because they cause buyers to consume less and sellers to produce less. ?This change in behavior shrinks the size of the market below the level that maximizes total surplus. Harcourt, Inc. items and derived items copyright 169。 2020 by Harcourt, Inc. Summary ?As a tax grows larger, it distorts incentives more, and its deadweight loss grows larger. ?Tax revenue first rises with the size of a tax. ?Eventually, however, a larger tax reduces tax revenue because it reduces the size of the market. Harcourt, Inc. items and derived items copyright 169。 2020 by Harcourt, Inc. Graphical Review Harcourt, Inc. items and derived items copyright 169。 2020 by Harcourt, Inc. The Effects of a Tax... Price 0 Quantity Quantity without tax Supply Demand Price without tax Price buyers pay Quantity with tax Size of tax Price sellers receive Harcourt, Inc. items and derived items copyright 169。 2020 by Harcourt, Inc. Tax Revenue... Price 0 Quantity Quantity without tax Supply Demand Price sellers receive Quantity with tax Size of tax (T) Quantity sold (Q) Tax Revenue (T x Q) Price buyers pay Harcourt, Inc. items and derived items copyright 169。 2020 by Harcourt, Inc. How a Tax Affects Welfare... Quantity 0 Price Demand Supply Q1 A B C F D E Q2 Tax reduces consumer surplus by (B+C) and producer surplus by (D+E) Tax revenue = (B+D) Deadweight Loss = (C+E) Price buyers pay = PB P1 Price without tax = PS Price sellers receive = Harcourt, Inc. items and derived items copyright 169。 2020 by Harcourt, Inc. The Deadweight Loss... Quantity 0 Price Demand Supply Q1 PB Price = P1 without tax PS Q2 Size of tax Lost gains from trade Cost to sellers Value to buyers Reduction in quantity due to the tax Harcourt, Inc. items and derived items copyright 169。 2020 by Harcourt, Inc. Tax Distortions and Elasticities... Quantity Price Demand Supply 0 When supply is relatively inelastic, the deadweight loss of a tax is small. (a) Inelastic Supply Size of tax Harcourt, Inc. items and derived items copyright 169。 2020 by Harcourt, Inc. Tax Distortions and Elasticities... Quantity Price Demand Supply 0 Size of tax When supply is relatively elastic, the deadweight loss of a tax is large. (b) Elastic Supply Harcourt, Inc. items and derived items copyright 169。 2020 by Harcourt, Inc. Tax Distortions and Elasticities... Quantity Price Demand Supply 0 When demand is relatively inelastic, the deadweight loss of a tax is small. (c) Inelastic Demand Size of tax Harcourt, Inc. items and derived items copyright 169。 2020 by Harcourt, Inc. Tax Distortions and Elasticities... Quantity Price Demand Supply 0 Size of tax When demand is relatively elastic, the deadweight loss of a tax is large. (d) Elastic Demand Harcourt, Inc. items and derived items copyright 169。 2020 by Harcourt, Inc. Deadweight Loss and Tax Revenue... PB Quantity Q2 0 Price Q1 Demand Supply Tax revenue PS Deadweight loss (a) Small Tax Harcourt, Inc. items and derived items copyright 169。 2020 by Harcourt, Inc. Demand Supply Tax revenue PB Quantity Q2 0 Price Q1 PS Deadweight loss Deadweight Loss and Tax Revenue... (b) Medium Tax Harcourt, Inc. items and derived items copyright 169。 2020 by Harcourt, Inc. PB Quantity Q2 0 Price Q1 Demand Supply PS Deadweight loss Deadweight Loss and Tax Revenue... (c) Large Tax Harcourt, Inc. items and derived items copyright 169。 2020 by Harcourt, Inc. Deadweight Loss and Tax Revenue Vary with the Size of the Tax... (a) Deadweight Loss Deadweight Loss 0 Tax Size Harcourt, Inc. items and derived items copyright 169。 2020 by Harcourt, Inc. Deadweight Loss and Tax Revenue Vary with the Size of the Tax... (b) Revenue (the Laffer curve) Tax Revenue 0 Tax Size