Economics
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Boundless Economics
Introducing Supply and Demand
Government Intervention and Disequilibrium
Economics Textbooks Boundless Economics Introducing Supply and Demand Government Intervention and Disequilibrium
Economics Textbooks Boundless Economics Introducing Supply and Demand
Economics Textbooks Boundless Economics
Economics Textbooks
Economics
Concept Version 7
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Taxation Impact on Economic Output

Tax Incidence of Producer

Tax Incidence of Producer

When supply is inelastic but demand is elastic, the majority of the tax is paid for by the consumer. Since quantity demanded drops significantly in this scenario, the producer is forced to sell less.

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    "Tax incidence (producer)."
    http://en.wikipedia.org/wiki/File:Tax_incidence_(producer).svg Wikipedia Public domain.

Related Terms

  • elastic
  • Tax incidence
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