New answers tagged consumer-surplus
1
Utility is not the same as consumer surplus. Consumer surplus is the difference between price an individuals pay and their individual reservation price.
Utility is a measure of gratification that can be completely different from consumer surplus and depending on what kind of utility we are talking about it might not even be possible to assign integer value ...
2
Tax is payed by the party it’s levied on, but I think your question is about tax burden and loss of consumer/producer surplus.
In this case both producers and consumers loose the same amount of their surplus, as you can calculate the lost area which is for both of them 40.
However, in real life this does not have to be symmetric. It depends on the ...
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