Ag Econ Chapter 6

Ag Econ Chapter 6 - Chapter 6 population shifter excise...

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Unformatted text preview: Chapter 6 population shifter excise taxes tobacco taxes, liquer taxes, gas tax, etc elasticity how much the population reacts the producer holds most of the burden of taxes don't worry about elasticity formulas special cases vertical perfectly in elastic horizontal perfectly elastic - wheat gas really inelastic, need to know Total expenditure!! E>1 and price rises total expenditure falls E<1 and price rises then total expenditure rises E = 1 then total expenditure does not change as price changes generally necessities have inelastic ...
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