quick study

Question 1

how to calculate consumer burden

Answer 1

after tax - before tax

Question 2

how to calculate producer burden

Answer 2

first find Ps = Pt - t, then calculate PB = Pe - Ps

Question 3

how to calculate government tax revenue

Answer 3

tax = t * Qt

Question 4

how to calculate income elasticity of demand (em)

Answer 4

em = (change Qd/change M)* (M/Qd)
positive = normal, neg = inferior

normal goods = more than 1 = lux, less than 1 = necessity

Question 5

how to calculate cross price elasticity of demand

Answer 5

exy = (change Qdx/Change Py) * (Py/Qdx)
negative = complements, positive = subs

Question 6

how to calculate price elasticity

Answer 6

ep = |(change Qdx/change Px) * px/Qdx)|

Question 7

elasticity

Answer 7

steeper demand curve = more inelastic
flatter demand curve = more elastic