New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

Econ 211 (Taxes, Excludable and Rival Goods)

by: May Thu

Econ 211 (Taxes, Excludable and Rival Goods) ECON 221

Marketplace > University of Miami > Economcs > ECON 221 > Econ 211 Taxes Excludable and Rival Goods
May Thu
GPA 3.8

Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

These notes include detailed graphs of the pigouvivan taxes, tables with examples of rival and excludable goods, and detailed explanation of everything covered in class.
Economic Principles and Problems 211
David Spigelman
Class Notes
Microeconomics, Taxes, Graphs, Pigouvivan
25 ?




Popular in Economic Principles and Problems 211

Popular in Economcs

This 5 page Class Notes was uploaded by May Thu on Monday February 29, 2016. The Class Notes belongs to ECON 221 at University of Miami taught by David Spigelman in Spring 2016. Since its upload, it has received 51 views. For similar materials see Economic Principles and Problems 211 in Economcs at University of Miami.

Similar to ECON 221 at UM


Reviews for Econ 211 (Taxes, Excludable and Rival Goods)


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 02/29/16
Sunday, February 28, 2016 ECO 211 Taxes, Excludable & Rival Goods - taxes: to correct market failures, raise revenues, redistribute funds, and finance operations - 3 levels of government • Federal • State • Local - Budget surplus: Tax revenues are greater than spending - Budget deficit: Spending is greater than tax revenue - Specific tax: tax on a specific good (example: alcohol tax, gasoline tax) 1 Sunday, February 28, 2016 No Tax (1) With Tax (2) 2-1 Consumer A+B+C A -B-C Producer D+E+F F -D-E Government 0 B+D B+D Welfare -C-E *Welfare is negative: There is a welfare loss/ dead weight loss from taxes. Consumer Price (PC) - Supplier Price (PS) = Tax *The graph shows that who you tax (supplier or producer) doesn’t matter. The change of quantity will be the same.* - Incidence: burden from a tax - Incidence of a specific tax doesn’t depend on who you tax, it only depends on the relative elasticity of the supply and demand, and whoever (produce/ consumer) has the more inelastic curve will bare the greater share of the burden from the tax. 2 Sunday, February 28, 2016 - The supply curve is steep (inelastic) -The price change for the customer is less than the price change for the producer - The supplier has more burden from the tax because of the inelasticity of the supply curve. - The demand curve is steep (inelastic) - The price change for the producer is less than the price change for the consumer. - The consumer has more burden from the tax because of the inelasticity of the demand curve. 3 Sunday, February 28, 2016 - Excludable VS Rival Goods - Excludable: can prevent somebody from using it (things you have to pay for) - Rival: something that is congested Excludable YES NO Private Goods Common Resources Rival Crowded Toll Road, University EducatioBrickell Road at rush hour Club Goods Public Goods uncrowded toll road, Coral Gables PoliCountry Road - Pigouvian Taxes -MSC = (Marginal cost + Marginal External Cost) - There is a deadweight loss if the market operates where demand and supply intersect. -The pigouvian tax (MSC curve) makes the market more efficient. - MSB = (Marginal Benefit+ Marginal External Benefit) - There is a deadweight loss if the market operates where demand intersects supply - The pigovian tax (MSB curve) makes the market efficient 4 Sunday, February 28, 2016 * Pigouvian taxes are used to maximize welfare* * Possible test question: There is NO welfare lost in a pigouvian tax, there is only welfare gain* 5


Buy Material

Are you sure you want to buy this material for

25 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Jim McGreen Ohio University

"Knowing I can count on the Elite Notetaker in my class allows me to focus on what the professor is saying instead of just scribbling notes the whole time and falling behind."

Janice Dongeun University of Washington

"I used the money I made selling my notes & study guides to pay for spring break in Olympia, Washington...which was Sweet!"

Steve Martinelli UC Los Angeles

"There's no way I would have passed my Organic Chemistry class this semester without the notes and study guides I got from StudySoup."

Parker Thompson 500 Startups

"It's a great way for students to improve their educational experience and it seemed like a product that everybody wants, so all the people participating are winning."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.