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erika fernandez
on Nov 26, 2024

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Given supply, the more inelastic the demand for a product, the larger the portion of an excise tax that is shifted to consumers.

Inelastic Demand

A scenario in which the need for a product remains largely unaffected despite variations in its price.

Excise Tax

A tax levied on specific goods, services, and activities, such as tobacco, alcohol, and gambling, often used to discourage their use and generate government revenue.

  • Acquire knowledge on the role of demand and supply elasticity in determining the tax load.
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Tariq YusufNov 29, 2024
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