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Abrar 5600011
on Nov 17, 2024

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The government's benefit from a tax can be measured by

A) consumer surplus.
B) producer surplus.
C) tax revenue.
D) consumer surplus plus producer surplus.

Tax Revenue

The income governments procure through the levy of taxes.

Consumer Surplus

The variance between the total consumers are prepared to invest in a good or service and what they end up investing.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service and the higher market price they actually receive.

  • Estimate the revenue generated by the implementation of a taxation measure.
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Anjel RankinNov 17, 2024
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