Tax Incidence & Deadweight Loss Simulator
DESCRIPTION
Settle the debate over who actually pays taxes. Adjust Supply/Demand elasticities and apply an Excise Tax to instantaneously visualize the Consumer Burden (Blue), Producer Burden (Red), and the inefficient Deadweight Loss (Yellow).
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Simulate protectionist trade policy. Imposing a tariff elevates the world price, mathematically shrinking Consumer Surplus while generating Government Revenue and Deadweight Loss triangles.
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Drag the market price line to find the optimal quantity where MR intercepts Marginal Cost. Instantly calculates Total Economic Profit or identifies the Shutdown point when Price falls below AVC.
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Understand firm costs in the Long Run. Slide targeted production scales to track how Short-Run Average Total Cost curves (SRATC) form the Returns to Scale envelope.
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Graph income inequality mathematically. Bend the Lorenz curve from Perfect Equality to extreme inequality and watch the Gini Coefficient (A/(A+B)) update in real-time.