Elasticity and Taxes

The tax incidence to the consumer and producer depend on the price elasticity of each curve.

Concept: Elasticity and Taxes

8m

Concept: Elasticity and Taxes: Perfectly Elastic Demand and Perfectly Inelastic Demand

3m

Problem: A $1 per-unit tax levied on consumers of a good is equivalent to

1m

Problem: A tax imposed on consumers of a good:

2m

Problem: Suppose that a unit tax of $2 is imposed on producers with initial equilibrium of $10. If the demand curve is vertical and the supply curve is upward-sloping, what will be the price faced by consumers after the tax?

3m