VIDEO: Tax Revenue and Deadweight Losses - GRADE 11-12
- Gerard Dericks
- Jan 15, 2012
- 1 min read
This video explains how taxation: (i) reduces economic welfare by increasing the price consumers must pay for goods, (ii) reduces the net price that sellers receive from selling, and (iii) creates deadweight losses (i.e. causing some buyers and sellers to stop transacting as a result of the tax), which lowers collective economic welfare.
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