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How does the change in consumer and producer surplus compare to the tax revenue?
Wiki User
∙ 10y ago
The aging population is a big problem for social-economical structures. A distinct consumer and producer surplus opens a can of worms: The welfare state is under the duty of taking care of the unemployed population. For this task the state needs the income, that is generated by taxes. If there are more unemployed than employed citizens, the state is not able to take enough money for providing a high living standard for the retirees.
Wiki User
∙ 10y ago
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Consumer surplus and producers surplus?
Consumer surplus - the difference between what a consumer is willing to pay and what they actually pay. Aggregate consumer surplus measures consumer welfare. Producer surplus - the difference between what a producer is willing to sell their product for and what they actually receive. Aggregate producer surplus measures producer welfare
How are consumer surplus and producer surplus measured?
Consumer surplus and producer surplus are measured using the price applied. Consumer surplus is when a consumer pays a less amount than expected while producer surplus is when a product fetches more money that expected.
How the deadweight loss influence the consumer surplus and producer surplus?
Deadweight loss reduces the amount of consumer and producer surplus.
What does producer surplus equal?
The total producer surplus is what is left after you subtract the total variable cost from the total revenue. It is the amount of all the producer surplus for each product sold.
How consumers surplus is converted into producer surplus and vice versa in different market structure?
Once the supply is decreased, consumer surplus will decrease. Producer surplus will decrease as well because neither is at the equillibrium. There will be a surplus leftover after the price increases. Once the supply is decreased, consumer surplus will decrease. Producer surplus will decrease as well because neither is at the equillibrium. There will be a surplus leftover after the price increases.
Consumer surplus and producers surplus?
Consumer surplus - the difference between what a consumer is willing to pay and what they actually pay. Aggregate consumer surplus measures consumer welfare. Producer surplus - the difference between what a producer is willing to sell their product for and what they actually receive. Aggregate producer surplus measures producer welfare
How are consumer surplus and producer surplus measured?
Consumer surplus and producer surplus are measured using the price applied. Consumer surplus is when a consumer pays a less amount than expected while producer surplus is when a product fetches more money that expected.
How the deadweight loss influence the consumer surplus and producer surplus?
Deadweight loss reduces the amount of consumer and producer surplus.
How do you calculate total welfare?
Total welfare is the sum of the consumer and producer surpluses. Consumer Surplus+Producer Surplus=Total Welfare
What does producer surplus equal?
The total producer surplus is what is left after you subtract the total variable cost from the total revenue. It is the amount of all the producer surplus for each product sold.
How consumers surplus is converted into producer surplus and vice versa in different market structure?
Once the supply is decreased, consumer surplus will decrease. Producer surplus will decrease as well because neither is at the equillibrium. There will be a surplus leftover after the price increases. Once the supply is decreased, consumer surplus will decrease. Producer surplus will decrease as well because neither is at the equillibrium. There will be a surplus leftover after the price increases.
True or False If a local Christmas tree farmer is earning a producer surplus on each Christmas tree he sells then his customers cannot enjoy any consumer surplus on the Christmas trees they buy?
False. It depends on the price consumers are willing to pay for the producer's Christmas tree. For example, if the producer is willing to sell his tree at $3 but the market price is $5, then the surplus for the producer is $2. Say, a consumer is willing to buy the tree at $15, then the consumer surplus us $10. Remember that the consumer surplus is the are under the demand curve and above the horizontal line passing through the equilibrium price. As long as this area exists, then it is possible for consumers to enjoy a consumer surplus.
What happens to consumer and producer surplus when the sale of a good is taxed?
They both decrease.
What happens to consumer and producer surplus when the sale of a good taxed?
They both decrease.
How does the consumer surplus change as the equilibrium price of a good rises or falls?
As the equilibrium price of a good raises the producer surplus increases as well, and as the equilibrium price falls the producer surplus decreases accordingly.
What is customer surplus and producer surplus?
Consumer surplus is the difference between the maximum amount a person is willing to pay for a good and its current market price. Producer surplus is the difference between the current market price and the full cost of production for the firm.
Give an example of shift in consumer and producer surplus?
is a pup trash what ever nigers
