Who pays the bigger portion of an excise tax on good x

Reference no: EM133611658

Questions:

a. For Good X, demand is elastic compared to supply. Who pays the bigger portion of an excise tax on good X? Demonstrate using a graph.

b. For Good Z, demand is inelastic compared to supply. Who pays the bigger portion of an excise tax on good Z? Demonstrate using a graph.

c. Does the government usually put excise taxes on goods with inelastic demand or elastic demand? Briefly, why?

Reference no: EM133611658

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