This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: O P C AB Total Tax Paid by Producers = (P P- P O ) X Q = Area P P P O BF CS #4.2 (page 2 of 2) C For any given supply, the less elastic is demand, the larger the burden of the tax on consumers, or the more elastic is demand the greater the burden on producers. C For any given demand, the less elastic is supply, the larger the burden of the tax on producers, or the more elastic is supply the greater the burden on consumers. D:\ECON202\CS\CS 4.2 BurdenTax.wpd...
View Full Document
This note was uploaded on 02/13/2012 for the course ECON 202 taught by Professor Brightwell during the Spring '08 term at Texas A&M.
- Spring '08
- Supply And Demand