The introduction of a tax in a perfectly competitive marketplace that is originally in equilibrium will only affect consumer's surplus and not producer's surplus.

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Quizplus · Accepted Answer

The introduction of a tax in a perfectly competitive marketplace will affect both consumer's and producer's surplus. The tax will increase the price paid by consumers and decrease the price received by producers, leading to a decrease in both surpluses. However, the degree to which each is affected depends on the elasticity of demand and supply in the market.

The Introduction of a Tax in a Perfectly Competitive Marketplace