▲ | mlyle 2 days ago | |||||||||||||||||||||||||
That's the opposite of how tax incidence works. Elasticity means you can change your amount produced in response to changes in price. Producers can’t easily change output, so they bear more of the tax burden themselves. But in the long run, producers can reallocate or exit until they’re producing at minimum(average total cost), which makes supply more elastic and shifts most of the burden onto consumers. This is stuff that's covered in week 4 of a basic microeconomics class. It gets a little fancier with imperfect competition or heterogenous agents, etc, but predicting tax incidence is basically dominated by this even in advanced microeconomics. | ||||||||||||||||||||||||||
▲ | tsunamifury a day ago | parent [-] | |||||||||||||||||||||||||
Sure ok. You’re being weirdly belligerent. | ||||||||||||||||||||||||||
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