Y1 17 Indirect Tax in relation to elasticity Flashcards
(4 cards)
1
Q
When market is elastic
A
Consumer burden is low
Producer burden is high
Gov revenue low
2
Q
When market perfectly elastic
A
Consumer burden is 0
Producer burden is entire tax
Government revenue is very low
3
Q
When market inelastic
A
Consumer burden is high
Producer burden is low
Government revenue is high
4
Q
When market perfectly inelastic
A
Consumer burden is entire tax
Producer burden is 0
Government revenue is very high
