1.Consumer's surplus Commodity taxation: pi=PI +t, T=tx(p, w) The loss of the taxation 1.L=-EV(p,p,w)-7=e(p,u)-e(p,u)-7 =。[(P,p12)+(3+,p1,) 2.=-CW(p,p,y)-T=e(p,l")-e(p,l2)-7 ∫(P1p,n2)-h(P+1p,n2
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 P1 h,(P,P-I,u) h,(pi,p_i,u) Is here a mistake? +t x(P12p1,w) h,(pi+t,p_, u) h(pi+t, p_, u)
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?