Surplus, Deadweight Loss, and Consumer Behavior Theory

The degree to which tax falls on a particular person or group

• Surplus
• Tax incidence
• Deadweight loss
• Elasticity

The difference from the equilibrium price before tax and the equilibrium price after tax will help you determine the...

• Tax burden on the consumer
• Tax burden on the producer
• Both, if you know what you're doing!
• None of these are correct

True or false: if a demand is inelastic, it is more likely to be taxed higher by the government

• True
• False

True or false: the more elastic the supply, the larger the portion of the tax is on producers

• True
• False

Efficiency loss is another term for...

• Deadweight loss
• Consumer surplus
• Producer surplus
• Elasticity

The maximum price a consumer is willing to pay for a product and the actual price that they do pay

• Consumer surplus
• Producer surplus
• Deadweight loss
• Allocative Efficiency

Reductions of combined consumer and producer surplus

• Deadweight loss
• Elasticity
• Tax incidence
• Surplus

Want-satisfying power

• Utility
• Deadweight loss
• Efficiency
• Surplus

According to the ____________________ when the consumer has "balanced his margins" he has achieved ______________.

• utility-maximizing rule; consumer equilibrium
• utility-maximizing rule; utility equilibirum
• allocative efficiency rule; consumer equilibrium
• deadweight loss rule; tax burden point

You can always expect consumers to act in a  _____________

• rational behavior
• play
• way to spend money without utility maximization
• way that helps the community