Using a graph, discuss how the elasticity of demand influences the incidence of a tax

Would consumer or producer carry the burden of tax if good is inelastic? Show on a graph

Can you explain with graphs as well please

What is the incidence of an excise tax when demand is highly inelastic? Highly elastic? What effect does the elasticity of supply have on the incidence of an excise tax? What is the effifi ciency loss of a tax, and how does it relate to elasticity of demand and supply?

Suppose the market for cigarette is competitive. An economist estimates the price elasticity of demand and supply for cigarette are -0.8 and 0.7 respectively. Suppose the government imposes a per-unit tax of $45 Some economists believe that a sales tax, in general, is undesirable. Explain. Despite this, why do most countries still impose a tax on cigarette? Explain plausible arguments.

Briefly explain (3-5 sentences) why it usually makes sense for the government to impose taxes on markets (and products) that have an inelastic demand instead of markets with an elastic demand.

How do the relative elasticities of supply and demand determine tax or subsidy incidence?

Alcohol and tobacco are products that contribute the most to the feral government’s tax revenue. Use the concept of elasticity to explain why.

Macmillan Learning The graph shows the demand and supply of bungee jumps in Xtremeland. The government decides to impose an excise tax on bungee jumps to help pay for the high number of back and neck injuries. What would the government's tax revenue be if it imposes a tax of $80 on each jump? What would the government's tax revenue be if it imposes a tax of $40 on each jump? S What would the government's tax revenue be if it imposes a tax of $120 on each jump? $ S Price of bungee jumps ($) 200 Supply 180 160. 140 120- 100. 80 60. 40 20 0 10,000 30,000 50,000 Quantity of bungee jumps Demand 70,000

Assume that the elasticity of demand for fanta is -0.8 while the elasticity of supply is 0.4. What is the pass-through fraction of a tax on fanta to consumers?