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Calculating effects of a specific tax

Syllabus: Plot demand and supply curves for a product from linear functions and then illustrate and/or calculate the effects of the imposition of a specific tax on the market (on price, quantity, consumer expenditure, producer revenue, government revenue, consumer surplus and producer surplus).

For higher level, you need to be able to understand how to calculate the impact of indirect taxes on the market equilibrium from demand and supply functions. The presentation below goes through this. Click on the screenshot or link below to open the presentation. It will open in a new web window. You will need a headset or speakers to listen to the explanation.