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8E/ Rgmhirgi

This document discusses the incidence of taxes using several examples. It explores how taxes impact producers, consumers, and the elasticity of demand. The key findings are: 1. Taxes are typically paid in larger proportion by the less elastic side of the market. 2. Tax shares are always between 0-100%, depending on the elasticity of supply and demand. 3. Specific taxes much easier to analyze graphically than price-taking under more complex market structures.

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Adam Renfro
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0% found this document useful (0 votes)
65 views16 pages

8E/ Rgmhirgi

This document discusses the incidence of taxes using several examples. It explores how taxes impact producers, consumers, and the elasticity of demand. The key findings are: 1. Taxes are typically paid in larger proportion by the less elastic side of the market. 2. Tax shares are always between 0-100%, depending on the elasticity of supply and demand. 3. Specific taxes much easier to analyze graphically than price-taking under more complex market structures.

Uploaded by

Adam Renfro
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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