LESON20A

LESON20A - Econ 275 - Public Finance - Fall 1992 - 11/10/92...

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Econ 275 - Public Finance - Fall 1992 - 11/10/92 - Lesson #20 - leson20a.275-- Page -- Admin Bring chalk Papers are not completely done yet. Almost. Incidence Ch 17 Partial Equilibrium Analysis When can this type of analysis be used. Excise (or commodity) taxes Use the overheads. Harvard Graphics taxinc1.hg3, dtaxinc2.hg3 Shift in demand is perception on part of suppliers. Shift in Supply is perception on the part of consumers. Presentation: First draw a standard graph (for cigarettes) on the board. Use numbers from one of my overheads. Talk about equilibrium. Now the thought experiment of imposing an excise tax. Key difference is that now there are two prices, one for suppliers and one for consumers with the difference being the tax. Emphasize that preferences and costs have not changed so the demand and the supply curves remain unchanged. How to avoid confusion when I end up shifting demand and supply?
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This note was uploaded on 07/08/2010 for the course ECON 275 taught by Professor Mcintyre during the Winter '05 term at BYU.

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LESON20A - Econ 275 - Public Finance - Fall 1992 - 11/10/92...

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