1. (a) Show in four diagrams the incidence of an indirect (specific) tax in the case of elastic and inelastic demand and elastic and inelastic supply. (b) Consider supply in the long run. Assume that...

a)Show in four diagrams the incidence of an indirect (specific) tax in the case of elastic and inelastic demand and elastic and inelastic supply.

b)Consider supply in the long run. Assume that a specific tax is imposed on a good that was previously untaxed. How will the incidence of this tax change as time passes?

1.<br>(a) Show in four diagrams the incidence of an indirect (specific) tax in the case of elastic<br>and inelastic demand and elastic and inelastic supply.<br>(b) Consider supply in the long run. Assume that a specific tax is imposed on a good that was<br>previously untaxed. How will the incidence of this tax change as time passes?<br>

Extracted text: 1. (a) Show in four diagrams the incidence of an indirect (specific) tax in the case of elastic and inelastic demand and elastic and inelastic supply. (b) Consider supply in the long run. Assume that a specific tax is imposed on a good that was previously untaxed. How will the incidence of this tax change as time passes?

Jun 09, 2022

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1. (a) Show in four diagrams the incidence of an indirect (specific) tax in the case of elastic and inelastic demand and elastic and inelastic supply. (b) Consider supply in the long run. Assume that...

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