It is just 250 words assignment no referencing required.

Effect of Taxation on Consumer & Producer Surplus 2
EFFECT OF TAXATION ON CONSUMER & PRODUCER SURPLUS
Table of Contents
Effect of Reduction of Tax on Consumer Surplus    3
Advantages & Disadvantages of reduced Taxation    3
References    5
Effect of Reduction of Tax on Consumer Surplus
If the tax is reduced it will impact positively the consumers. As the consumers perceive a lower price in the market due to the reduction in the taxation. Since the consumers notice that they can purchase higher quantities at a price that could have been much hired if the tax would remain constant. This will certainly have a positive impact on the consumer surplus as the consumer surplus increases when tax is comparatively reduced. In the given figure it is clear that the reduction in taxation leads to an increase in the consumers surplus. The consumer surplus would...