The Incidence of a Tax - Overview

Nights before my exams 🫡🤍

A Things Brought Things Ruppess 60 Six Pen Give Taxe ofOne Pen is Only Six Ruppess.

why did he put the seller portion in oragne above the 5.60 if the price never reached 6$? wouldnt it make more sense to put the sellers tax obligation below to display the cutting into profit?

a level exam tomorrow, thanks lol

Amazing! May Allah guide you Ameen.

Youve gained a subscriber. Keep up the great videos!

I appreciate this. I finally understand because of you. Thank you so much😭

there are theoretical flaws in this illustration

Fuck uuuuuuuuuuuuu

are u teaching us or yourself baby

Wow, bless you for posting these videos! Such a help :)

Sorry, but this is dead wrong. You get your numbers messed up sir. Consumers pay .40c while producer pays .60c. Anyone else found this confusing?

Excellent video on topic! Wish you were my Econ professor! ;-)

Thank you! You rock!

Isn't this subsidies and not taxes???

Thank you!!!!!!!!!

This looks wrong to me, the original price was $5, which was paid by the consumer, however it has risen to $5.60, thus this is the incidence of taxation on the consumer. So of the $1, $0.60 is paid by the consumer. However there is $0.40 to be paid. This is paid by the producer, however it falls below the consumer incidence, and can be illustrated by a vertical line straight down from the new taxed supply curve to the original/previous supply curve. This would mean that another price of $4.60 should be marked and the distance from $4.60 to $5 is the producer incidence and $5 to $5.60 is the consumer burden/incidence. This also makes sense because the distance between the two supply curves should be $1 as it is an indirect specific tax, causing a parallel shift of $1. However as shown by this gentleman, the producer incidence is above the consumer incidence and beyond the taxed supply curve, which cannot be the case.

This guide doesn't make sense.
With the new equilibrium price of 5.60, the buyer is paying an extra 60 cents of the 1 dollar tax.
When the supplier earns that 5.60, he has to pay tax on it of 1. Meaning he is left with 4.60.

thank you. now i understand but... please take the music out.

it would have been most helpful if the music is not there. I get headaches after 3 seconds.

but isnt what he said was the opposite ?!?!?!

i think he meant the opposite !!!

that what i was thinking

Either my text is wrong or this guy is. Check your textbook before you follow this.

This is really pretty simple. When taxes increase, so does the price of goods sold. When the price of goods sold increases, the demand shrinks. As is typically the case, costs are passed to the consumer.

And of course in the case of corporate taxes, the 40 cents taxes payed by the "seller" is really out of the pocket of the stockholders and the additional 60 cents is payed by the buyer of the product. Corporate taxes as a means of 'punishing the rich CEO's" is asinine. Board members don't pay corporate taxes. They pay personal income taxes.

is there a video where you actually do the math?

Doesn't the buyer pay 40 ? and the seller 60 ?

Yes you have it the wrong way round, the buyer pays 40 and the seller pays 60

You explain VERY VERY clearly!! Thanks a lotttttttttttttt! Will watch more of your videos. The same: No music will be better. It distracts...Noise in the communication process .

the music is very distracting but I love your stuff otherwise

All that talking and no algebra ... Tax Incidence theory of a tax is easy, maybe show how you got those numbers?