Summary of Impuestos | Mercado y bienestar | Microeconomía | Libertelia.org

00:00:00 - 00:05:00

The video discusses the implementation of taxes in a market, and explains that taxes are primarily used by governments to collect funds and reduce consumption of certain products. Using examples of specific market taxes, the video explains the different types of taxes and their impact on the equilibrium price and quantity. The video also discusses the concept of taxes on market welfare, using the example of a book market to demonstrate the effects of a tax on consumers, suppliers, and the overall economy. Ultimately, the implementation of taxes results in inefficiencies and a decrease in the overall size of market surpluses.

• 00:00:00 In this section, the video explains that taxes are implemented in a market for two main reasons: to collect funds for government activities and to reduce the amount consumed in a market. The video provides classic examples such as cigarette or alcohol taxes which are specific to a particular market and aim to reduce the consumption of the product. There are different types of taxes including import tariffs or those that tax all goods such as VAT. The implementation of taxes distorts the market and affects the equilibrium price and quantity. The video explains how the difference between the price paid by consumers and the price received by suppliers is the tax amount, and the excess of consumers and producers is affected by the implementation of taxes. Ultimately, the government collects taxes to fund the desired activities or reduce consumption in particular markets.
• 00:05:00 In this section, the concept of taxes on market welfare is discussed using an example of a book market. The imposition of a tax on consumers results in a price increase, leading to a decrease in consumer quantity and supplier price. This will cause the loss of total surplus in the economy, which will lead to the government being better off, while suppliers and consumers will both lose. Ultimately, the tax applied in this market will lead to inefficiencies, causing a decrease in the overall size of market surpluses, and a smaller economy as a whole.