Student Videos

Indirect Taxes and Producer Surplus

  • Levels: AS, A Level, IB
  • Exam boards: AQA, Edexcel, OCR, IB, Eduqas, WJEC

In this revision video we work through step-by-step the impact of an indirect tax on the level of producer surplus.

Indirect Taxes and Producer Surplus

Producer surplus

Producer surplus is the difference between the price that producers are willing and able to supply a product for and the price they receive in the market. It is a measure of economic welfare for suppliers to a market or industry.

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