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Lecture 7

ECON 1P91 Lecture Notes - Lecture 7: Demand Curve, Fax, Bumper Crop


Department
Economics
Course Code
ECON 1P91
Professor
Professor Cottrel
Lecture
7

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☞☞☞☞☞★★★★★★☆☆☆☆☆☆**********⚠⚠⚠⚠⚠⚠⚠
✎✎✎✎✎✎✎
ECON1P91 Lecture 7(Jan.28, 2016)
10 cents excise tax on polluters:

New supply curve:


 !
New equilibrium with tax:
"#$%$&'
(
(
)(

$%*$$+
,-

.
%.
$&%$+
'/&)

Only pages 1-3 are available for preview. Some parts have been intentionally blurred.

Incidence of Tax
elas+city0Demand
elas+city0Supply
1$&%$+2%.3
1$&45$+%$60
%.!7$
8$&%$6,%$+%$6-
9 79 .
%$60
!!$

Only pages 1-3 are available for preview. Some parts have been intentionally blurred.

(7$
8%$6
9 9( 
:;&;$
8
($9
9 (9
Incidence of taxa+on:
66Elas+city of Demand and Supply
*Demand is perfectly elas+c
6&6horizontal
consumer$/6
producer+all
6/&
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