Illustrate on Three Demand-And-Supply Graphs How the Size of a Tax

question 44

Essay

Illustrate on three demand-and-supply graphs how the size of a tax (small, medium and large) can alter total revenue and deadweight loss.

Grasp the various types of consumer decision-making processes and the factors that influence them, including levels of involvement.

Appreciate the significance of attitudes in consumer behavior, including their components and how they guide actions.

Recognize situational factors affecting consumer decisions and the role of the temporal state in purchasing behavior.

Distinguish between functional and psychological needs and how products and services cater to these needs.

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Definitions:

Pure-monopoly Market

A market structure where a single firm has the exclusive control over the supply of a product or service, with no close substitutes available, allowing for price setting.

X-inefficiency

The difference between actual and minimum possible input costs, often occurring due to a lack of competitive pressure and inefficiencies in production.

Minimum Possible Average Cost

The lowest average cost at which a firm can produce its output in the long run, given its technology and factor prices.