Briefly discuss the effect of price elasticity of supply and demand on tax incidence. When the demand for a product is less elastic than supply, pay the majority of the tax on a product; when supply for a product is less elastic than the demand, pay the majority of the tax on the pre firms consumers
Briefly discuss the effect of price elasticity of supply and demand on tax incidence. When the demand for a product is less elastic than supply, pay the majority of the tax on a product; when supply for a product is less elastic than the demand, pay the majority of the tax on the pre firms consumers
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter6: Supply, Demand And Government Policies
Section: Chapter Questions
Problem 6CQQ
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![Briefly discuss the effect of price elasticity of supply and demand on tax incidence.
When the demand for a product is less elastic than supply.
pay the majority of the tax on a product; when supply for a product is less elastic than the
demand,
pay the majority of the tax on the pre
firms
consumers](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9911ccd8-5627-4388-a490-2f74972dd621%2Fadfc43fb-d7ee-402a-8d4e-cd3a1d259234%2Flq3yuc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Briefly discuss the effect of price elasticity of supply and demand on tax incidence.
When the demand for a product is less elastic than supply.
pay the majority of the tax on a product; when supply for a product is less elastic than the
demand,
pay the majority of the tax on the pre
firms
consumers
![Briefly discuss the effect of price elasticity of supply and demand on tax incidence.
When the demand for a product is less elastic than supply,
pay the majority of the tax on a product; when supply for a product is less elastic than the
demand,
pay the majority of the tax on the product.
consumers
firms](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9911ccd8-5627-4388-a490-2f74972dd621%2Fadfc43fb-d7ee-402a-8d4e-cd3a1d259234%2Fpfwtx1_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Briefly discuss the effect of price elasticity of supply and demand on tax incidence.
When the demand for a product is less elastic than supply,
pay the majority of the tax on a product; when supply for a product is less elastic than the
demand,
pay the majority of the tax on the product.
consumers
firms
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