How a tax affects welfare The change in total welfare includes o The change in consumer surplus The change in producer surplus The change in tax revenue o The losses to buyers and sellers exceed the revenue raise by the government The fall in total surplus is called the deadweight lossHow a Tax affects welfare • The change in total welfare includes: • The change in consumer surplus. • The change in producer surplus. • The change in tax revenue. • The losses to buyers and sellers exceed the revenue raise by the government. • The fall in total surplus is called the deadweight loss