1.Consumer's surplus Commodity taxation p=pI+t, T=tx,(p, w) The loss of the taxation 1.D=-E(p,p2W)-7=e(p,)-e(p,)-T P1 =(P,n)(p+1p,n) 2. L2=-Cv(po,p, w)-T=e(p,u)-e(po, u)-T =[(P1p2n)(P+p,n Pi +t
1.Consumer’s surplus • Commodity taxation: • The loss of the taxation: – 1. – 2. 1 0 1 1 1 1 p p t T t x p w = + = , ( , ) 0 1 0 1 1 0 1 1 1 0 1 1 0 1 1 1 1 1 1 1 1 ( , , ) ( , ) ( , ) [ ( , , ) ( , , )] p t p L EV w T e u e u T h p u h p t u dp + − − = − − = − − = − + p p p p p p 0 1 0 1 2 0 1 1 0 0 0 0 0 0 1 1 1 1 1 1 1 ( , , ) ( , ) ( , ) [ ( , , ) ( , , )] p t p L CV w T e u e u T h p u h p t u dp + − − = − − = − − = − + p p p p p p
1.Consumer's surplus Ph(P1,P1,) h1(P12p12) Is here a mistake? +t x1(1,p12) h(p8+1,p1,l)h(p?+t,p1,l)
1.Consumer’s surplus p1 x1 0 1 1 1 h p u ( , , ) p− 1 1 1 x p w ( , , ) p− 1 1 1 1 h p u ( , , ) p− 0 1 p 0 1 p t + 0 1 1 1 1 h p t u ( , , ) + p− 0 0 1 1 1 h p t u ( , , ) + p− Is here a mistake?