174930
Description
Mind Map by notsoblonde95, updated more than 1 year ago
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Created by notsoblonde95
almost 11 years ago
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The efficiency of
market equilibrium
- Consumer and producer surplus
- Equation:
1/2(b) x h
- Definition of consumer surplus: the
difference between what consumers are
willing to pay and what they actually pay
- Definition of
producer surplus:
the difference
between total
earnings and total
costs
- Equation:
1/2(b) x h
- Sales tax
- Definition: An indirect tax collected by a
third party (firms) which is the
passed on to the government
- Definition: An indirect tax collected by a
third party (firms) which is the
passed on to the government
- Subsidy
- Definition: A payment by
the government to firms
to keep their costs down,
and as a result will
increase supply
- Definition: A payment by
the government to firms
to keep their costs down,
and as a result will
increase supply
- The incidence of a sales tax
- The incidence of a subsidy
- Tariffs and trade
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