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

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.

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

Explain how changing the price elasticity of demand from elastic to inelastic affects the consumer's economic burden of a tax and the government's collected tax revenues.

Suppose the price elasticity of demand for luxury boats is zero. Explain, with the use of a diagram, what the effect of imposing an indirect tax would be on price, quantity sold, and tax revenue gained from the sale of luxury boats.

Doyle and Samphantharak (2008) find that when a 5% gas tax is implemented, prices consumers pay for gas increase by about 4%. What role does demand elasticity play in determining the size of this price change? That is, under what demand elasticity cases would the price change be closer to 5%, or closer to 0%? Illustrate and explain using supply-and-demand graph(s)..

As price elasticity of demand increases, the burden of a tax gets _______; as price elasticity of supply increases, the burden of a tax gets _________. (Here, you can read "bigger" as "heavier" and "smaller" as "lighter" if that helps.)   bigger; bigger smaller; smaller bigger; smaller smaller; bigger