Tax Revenue and Deadweight Loss

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Why do taxes exist? What are the effects of taxes? We discuss how taxes affect consumer surplus and producer surplus and discuss the concept of deadweight loss at length. We’ll also look at a real-world example of deadweight loss: taxing luxury yachts in the 1990s. • Microeconomics Course: https://mru.io/5kv • Next video: https://mru.io/984 • Help us caption translate this video! http://amara.org/v/GCs4/ • 00:00 Introduction • 00:30 The Effects of a Tax • 04:16 Explaining Deadweight Loss • 07:26 Deadweight Loss and Elasticity • 09:30 Taxing Yachts – A Good Idea?

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