Question: 1. This question pertains to consumer surplus, producer surplus and deadweight loss These 3 concepts are discussed in all economic textbooks, including the one that
1. This question pertains to consumer surplus, producer surplus and deadweight loss These 3 concepts are discussed in all economic textbooks, including the one that is assigned to this class. Please go the relevant chapter in your textbook, and answer the following by using graphs:
a. Show the impact of a ban on import of sugar on the consumer surplus in the US.
b. Show the impact of a tax (also known as an exercise tax) on the demand of cigarettes, which is an inelastic demand.
a. Show the impact of a ban on import of sugar on the consumer surplus in the US.
b. Show the impact of a tax (also known as an exercise tax) on the demand of cigarettes, which is an inelastic demand.
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