Taxation Activity 1: Supply, Demand, Welfare

Abstract

This activity is an economics centered activity introducing the impacts on market equilibrium prices and quantities of a government tax implemented in a market, as well as the social (welfare) impact of the tax. The learning objectives are to 1) Explore the graphical impact of a tax on supply and demand, 2) Interpret the changes in equilibrium price and quantity when a tax is added, and 3) Observe welfare changes due to the tax. The process skill target is forming shared understanding.

Level: Undergraduate

Setting: Classroom

Activity Type: Learning Cycle

Discipline: Economics

Course: Economics

Keywords: price, quantity, supply, demand, graph analysis, production, tax, equilibrium