Microeconomics

Table of Contents

1. Topic pack - Microeconomics - introduction
2. 1.1 Competitive Markets: Demand and Supply
3. 1.1 Competitive Markets: Demand and Supply - notes
4. 1.1 Competitive markets - questions
5. 1.1 Competitive markets - simulations and activities
6. 1.2 Elasticities
7. 1.2 Elasticities - notes
8. Section 1.2 Elasticities - questions
9. Section 1.2 Elasticities - simulations and activities
10. 1.3 Government intervention
11. 1.3 Government Intervention - notes
12. 1.3 Government intervention - questions
13. 1.3 Government intervention - simulations and activities
    1. DragIT - Incidence of tax
    2. DragIT - Tax revenue
    3. DragIT Maximum prices
    4. DragIT - Intervention in agricultural markets
    5. DragIT - Intervention in agricultural markets (2)
14. 1.4 Market failure
15. 1.4 Market failure - notes
16. Section 1.4 Market failure - questions
17. Section 1.4 Market failure - simulations and activities
18. 1.5 Theory of the firm
19. 1.5 Theory of the firm - notes (HL only)
20. Section 1.5 Theory of the firm - questions
21. Section 1.5 Theory of the firm - simulations and activities
22. Print View

DragIT - Incidence of tax

In this interaction, drag the end of the demand curve up and down to see the impact of a change in the elasticity of demand on the tax revenue received by the government and the incidence of the tax on the firm and on the consumer. The tax revenue is the sum of the two areas - consumer share and firm share.

In this next interaction, drag the end of the supply curve up and down to see the impact of a change in the elasticity of supply on the tax revenue received by the government and the incidence of the tax on the firm and on the consumer. Again, the tax revenue is the sum of the two areas - firm and consumer.

1

Incidence of tax The more elastic the demand curve the lower the consumers share of the tax will be. a) True b) False Yes, that's correct. The statement is true. The more elastic the demand curve, the lower the proportion of the tax is paid by the consumer as the firms are unable to pass the tax on.No, that's not right. The statement is true. The more elastic the demand curve, the lower the proportion of the tax is paid by the consumer as the firms are unable to pass the tax on.Your answer has been saved.

2

Incidence of tax The more inelastic the supply curve the lower the producer share of the tax will be. a) True b) False Yes, that's correct. The statement is false. The more inelastic the supply curve, the higher the proportion of the tax that is paid by the producer.No, that's not right. The statement is false. The more inelastic the supply curve, the higher the proportion of the tax that is paid by the producer.Your answer has been saved.

3

Incidence of tax The more inelastic the demand curve the higher the producer share of the tax will be. a) True b) False Yes, that's correct. The statement is false. The more inelastic the demand curve, the lower the proportion of the tax that is paid by the producer as the firms are able to pass the tax on.No, that's not right. The statement is false. The more inelastic the demand curve, the lower the proportion of the tax that is paid by the producer as the firms are able to pass the tax on.Your answer has been saved.