If Net Taxes Rise by $150 Billion,would You Expect Household

question 4

Essay

If net taxes rise by $150 billion,would you expect household saving to fall by $150 billion,by more than $150 billion,or by less than $150 billion?

Understand the concept of consumer surplus and how changes in market conditions affect it.

Recognize the effects of price floors and price ceilings on consumer surplus.

Interpret graphical representations of changes in consumer surplus due to price changes.

Identify the impact of income changes on consumer surplus for normal and inferior goods.