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

question 27

Essay

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

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Definitions:

Maslow's Needs Hierarchy

A theory in psychology that prioritizes human needs into a hierarchy from basic physical needs to complex psychological needs, culminating in self-actualization.

Security

The state of being free from danger or threat, or the measures taken to be free from those dangers.

Stability

The quality of being resistant to change or variation, often seen as a desirable trait in social, psychological, or economic contexts.

Two-Factor Theory

A psychological theory proposing that employee satisfaction and motivation are influenced by both hygiene factors and motivators, related to job context and content respectively.