Question

Draw diagrams for (i) a market, (ii) a typical consumer in that market, and (iii) a typical firm in that market, to show the short run and long run effects of an excise tax. Clearly label all important details, and discuss the logic of your analysis. A. Show a case in which the tax burden falls mostly on consumers. B. Show a case in which the tax burden falls mostly on firms. C. Show the typical case in which the tax burden is shared

Answer 1

the a market, (ii) a typical consumer in that market, and (iii) a typical firm in that market, to show the short run and long run effects of an excise tax. Clearly label all important details, and discuss the logic of your analysis. A. Show a case in which the tax burden falls mostly on consumers. B. Show a case in which the tax burden falls mostly on firms. C. Show the typical case in which the tax burden is shared