Microeconomics

Table of Contents

1. Topic pack - Microeconomics - introduction
2. 1.1 Competitive Markets: Demand and Supply
3. 1.1 Competitive Markets: Demand and Supply - notes
4. 1.1 Competitive markets - questions
5. 1.1 Competitive markets - simulations and activities
6. 1.2 Elasticities
7. 1.2 Elasticities - notes
8. Section 1.2 Elasticities - questions
9. Section 1.2 Elasticities - simulations and activities
10. 1.3 Government intervention
11. 1.3 Government Intervention - notes
12. 1.3 Government intervention - questions
13. 1.3 Government intervention - simulations and activities
    1. DragIT - Incidence of tax
    2. DragIT - Tax revenue
    3. DragIT Maximum prices
    4. DragIT - Intervention in agricultural markets
    5. DragIT - Intervention in agricultural markets (2)
14. 1.4 Market failure
15. 1.4 Market failure - notes
16. Section 1.4 Market failure - questions
17. Section 1.4 Market failure - simulations and activities
18. 1.5 Theory of the firm
19. 1.5 Theory of the firm - notes (HL only)
20. Section 1.5 Theory of the firm - questions
21. Section 1.5 Theory of the firm - simulations and activities
22. Print View

DragIT - Tax revenue

The following interaction illustrates the effects of a change in tax rates on the revenue received by the government. Remember that the effect of a tax is to shift the supply curve upwards by the amount of the tax per unit.

Click on the "S2" label and drag the supply curve S2 to the left and back to see the impact of a change in the level of taxation on the tax revenue.

1

Tax revenue As the tax per unit rises the equilibrium quantity will fall. a) True b) False Yes, that's correct. The statement is true. A higher rate of tax will reduce the equilibrium quantity traded in the market.No, that's not right. The statement is true. A higher rate of tax will reduce the equilibrium quantity traded in the market.Your answer has been saved.