Tax Incidence and Elasticity Paper
Alzahra School Tax Incidence and Elasticity Paper
- Using a supply and demand graph, show how the incidence of a tax levied on sellers/suppliers of $30 per unit sold is, at least partially, paid by buyer/consumers.
- https://www.economicshelp.org/concepts/tax-incidence/
- If the same tax were levied on buyers rather than sellers in this market, how would the incidence of the tax change?
- How much of the $30 tax would be paid by buyers, if demand was perfectly inelastic? If supply was perfectly inelastic?
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