question
Tax on a good levied on buyers
answer
demand curve shifts left
question
tax on a good levied on sellers
answer
supply curve shifts right
question
tax on a good levied on buyers or sellers
answer
a price wedge, price paid by buyer rises, price received by sellers fall, low quantity sold
question
tax burden
answer
Distributed between producers and consumers/ determined by elasticities of supply and demand
question
Tax revenue
answer
T x Q(quantity of good sold)
question
dead weight loss
answer
fall in total surplus that result from a market distortion such as tax
question
inelastic supply
answer
dead weight loss is small (s)
question
elastic supply
answer
dead weight loss is big (s)
question
inelastic demand
answer
dead weight loss is small (d)
question
elastic demand
answer
dead weight loss is big (d)
question
more elastic
answer
the larger the dead weight loss
question
as tax increases
answer
dead weight loss increases
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