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  • Incidence of Tax

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    Laraib Nadeem
    13 views4 pages
    1. The document discusses indirect taxes like GST and VAT that are levied on goods and services. 2. It analyzes the impact of indirect taxes on price and quantity transacted depending on whether demand or supply is elastic. 3. The burden of the tax depends on whether demand or supply is more inelastic - the more inelastic side bears more of the tax burden.

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    A-level eco incidence of tax

    Original Title

    Incidence of tax

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    1. The document discusses indirect taxes like GST and VAT that are levied on goods and services. 2. It analyzes the impact of indirect taxes on price and quantity transacted depending on whether demand or supply is elastic. 3. The burden of the tax depends on whether demand or supply is more inelastic - the more inelastic side bears more of the tax burden.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    13 views4 pages

    Incidence of Tax

    Uploaded by

    Laraib Nadeem
    1. The document discusses indirect taxes like GST and VAT that are levied on goods and services. 2. It analyzes the impact of indirect taxes on price and quantity transacted depending on whether demand or supply is elastic. 3. The burden of the tax depends on whether demand or supply is more inelastic - the more inelastic side bears more of the tax burden.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 4

    GOVERNMENT MICRO INTERVENTION

    INDIRECTTAX
    It is levied imposed placed ongoods services expenditure
    consu ption S
    so
    eg GST VAT duties

    St LEFTWARDSHIFT

    PED L P E S C P If p
    g
    PE D P ES CLD Do
    100 go

    IEII.tn
    fromthe new
    equili rium
    E to theold
    supply curve so
    TOTALTAX
    TPU x Q
    11 x 100
    XP E 2 1100
    INELASTIC DEMAND INEDEMANDE
    s ELASTICSUPPLY
    so
    Si
    f so
    pi C P P OE
    f e
    Po oeo
    C P
    Do
    Do
    9,90

    ELASTIC SUPPLY

    so
    I e
    Eo

    Do

    a a

    Do S
    P so

    Po DP TPU
    thusconsumer
    bearsall the
    burden
    ELASTIC DEMAND ELASTIC DEMAND
    s INELASTIC SUPPLY
    so CCP PED PES
    Sis
    1 Ep
    Do
    Ppf F Eo
    Do
    p
    a do

    INELASTIC
    SUPPLY CCP
    S So
    CCP

    Pi c Eo

    p
    Do

    a do

    AP TPU
    P Si
    Po so

    f p

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