Taxation and International trade
Answer the following questions:
- What happens to consumer and producer surplus when the sale of a good is taxed? How does the change in consumer and producer surplus compare to the tax revenue? Explain
- How do the elasticities of supply and demand affect the dead weight loss of a tax? Why do they have this effect?
- Describe what a tariff is and its economic effects. List five arguments often given to support trade restrictions. How do economists respond to these arguments?
Write a 700-to-900 paper in APA Style answering all questions, and include at least 2 reputable sources.
