1.Consumer's surplus Commodity taxation: P!=pi +t, T=tx,(p, w) The loss of the taxation 1.=-EV(p,p,)-T=e(p,l)-e(p,l)-T Pi+t Th, (pu,p_i,u)-h,(pi+t, p-i, u)]dpy 2.=-CW(p,p,w)-T=e(p,l)-e(p,l)-7 =(p2)(+p21.Consumer’s surplus • Commodity taxation: • The loss of the taxation: 1. 2. 1 0 1 1 1 1 p p t T t x p w = + =  , ( , ) 0 1 0 1 1 0 1 1 1 0 1 1 0 1 1 1 1 1 1 1 1 ( , , ) ( , ) ( , ) [ ( , , ) ( , , )] p t p L EV w T e u e u T h p u h p t u dp + − − = − − = − − = − +  p p p p p p 0 1 0 1 2 0 1 1 0 0 0 0 0 0 1 1 1 1 1 1 1 ( , , ) ( , ) ( , ) [ ( , , ) ( , , )] p t p L CV w T e u e u T h p u h p t u dp + − − = − − = − − = − +  p p p p p p