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Miroeconomics - Coggle Diagram

- - - - Imposed on particular goods and services (e.g petrol, gasoline, cigerattes and alcohol)
    - - Imposed on spending on almost all goods and sevices
    - - Excise tax
        
        Producer
        
        Produce less
        
        Reduce the price received
        
        Consumer
        
        Reduce their spendings on taxed goods
        
        increase the price paid
    - - Government revenue
      - Discourage consumption of certain products (harmful)
        
        Excise tax on harmful products
        
        Connection to PED
        
        Pp: Producer price
        
        Pc: Consumer price
      - Income redistribution (reducing inequality)
        
        Excise tax on luxury goods
  - - - Increase income
      - Firm revenue
    - - Welfare loss
      - consumer surplus
      - Producer surplus
- - - - Excludability
      - Rivalry
  - - - Marginal social benefit
      - Marginal social cost
      - Marginal private benefit
      - Marginal private cost
    - - Welfare loss
      - Over use of common good resources
      - Policies to correct negative externalities and prevent overuse of common good resources
        
        Pigouvian tax
        
        Carbon tax
        
        Tradable permits
        
        Evaluation
        
        Advantages
        
        Disadvatages
        
        Governemnt legislation and regulation
    - - Welfare loss
      - Demerit goods
        
        E.g
      - Policy
        
        Nudges
        
        Envaluation
        
        Advantages
        
        Disadvantages
    - - Welfare loss
      - Policy