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Unformatted text preview: nskilled, younger workers kill d k The Sales Tax Supplier Pays pp y
S + tax 110
Price including tax (dollars per player) (d ll l ) S $10 tax Tax revenue
Deadweight loss 105 100 95 DA 3 4 5 6 Quantity (thousands of CD players per week) The Sales Tax Consumer Pays y
Price including tax (dollars per player) (d ll l ) S 105 100 95 Tax revenue
Deadweight $10 tax loss DA 3 4 D, less tax 5 6 Quantity (thousands of CD players per week) Sales Tax and the Elasticity f D El ti it of Demand d
P Price including taX(dollars per dos s se) Buyer pays entire tax 2.20 S + tax S 2.00 Perfectly inelastic demand
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This document was uploaded on 03/13/2014.
- Winter '13