Principles of Microeconomics

When a tax is imposed on the buyers of a good, the demand curve shifts - downward by the amount of the tax Efficiency is attained when - total surplus is maximized. The size of the deadweight loss generated from a tax is affected by the - elasticities of both supply and demand. The maximum price that a buyer will pay for a good is called the - willingness to pay. When a tax is placed on a product, the price paid by buyers _________, and the price received by sellers __________. - rises; f...