【正文】
lers’ price and reduces the quantity traded. $t pb qt And buyers pay pb = ps + t. ps Quantity Taxes amp。 Market Equilibrium and D p a bpb b( ) ? ?S p c dps s( ) .? ?Quantity Taxes amp。 Market Equilibrium p a c btb ds ? ? ??p a c dtb db ? ? ??q ad bc bdtb dt ? ? ??The total tax paid (by buyers and sellers bined) is T tq t ad bc bdtb dt? ? ? ?? .Tax Incidence and OwnPrice Elasticities ?The incidence of a quantity tax depends upon the ownprice elasticities of demand and supply. Tax Incidence and OwnPrice Elasticities p D(p), S(p) Market demand Market supply p* q* $t pb qt ps Tax Incidence and OwnPrice Elasticities p D(p), S(p) Market demand Market supply p* q* $t pb qt ps Change to buyers’ price is pb p*. Change to quantity demanded is Dq. Dq Tax Incidence and OwnPrice Elasticities Around p = p* the ownprice elasticity of demand is approximately ? Dbqqp pp??D***Tax Incidence and OwnPrice Elasticities Around p = p* the ownprice elasticity of demand is approximately ??DbbDqqp ppp pq pq??? ? ???DD******.Tax Incidence and OwnPrice Elasticities p D(p), S(p) Market demand Market supply p* q* $t pb qt ps Tax Incidence and OwnPrice Elasticities p D(p), S(p) Market demand Market supply p* q* $t pb qt ps Change to sellers’ price is ps p*. Change to quantity demanded is Dq. Dq Tax Incidence and OwnPrice Elasticities Around p = p* the ownprice elasticity of supply is approximately ? Ssqqp pp??D***Tax Incidence and OwnPrice Elasticities Around p = p* the ownprice elasticity of supply is approximately ??SssSqqp ppp pq pq??? ? ???DD******.Tax Incidence and OwnPrice Elasticities p D(p), S(p) Market demand Market supply p* q* pb qt ps Tax paid by buyers Tax paid by sellers Tax Incidence and OwnPrice Elasticities p D(p), S(p) Market demand Market supply p* q* pb qt ps Tax paid by buyers Tax paid by sellers Tax incidence = p pp pbs??**.Tax Incidence and OwnPrice Elasticities Tax incidence = p pp pbs??**.p pq pqbD? ???***.D?p pq pqsS? ???***.D?Tax Incidence and OwnPrice Elasticities Tax incidence = p pp pbs??**.p pq pqbD? ???***.D?p pq pqsS? ???***.D?So p pp pbsSD??? ?**.??Tax Incidence and OwnPrice Elasticities p pp pbsSD??? ?**.??Tax incidence is The fraction of a $t quantity tax paid by buyers rises as supply bees more ownprice elastic or as demand bees less ownprice elastic. Tax Incidence and OwnPrice Elasticities p D(p), S(p) Market demand Market supply p* q* $t pb qt ps As market demand bees less own price elastic, tax incidence shifts more to the buyers. Tax Incidence and OwnPrice Elasticities p D(p), S(p) Market demand Market supply p* q* $t pb qt ps As market demand bees less own price elastic, tax incidence shifts more to the buyers. Tax Incidence and OwnPrice Elasticities p D(p), S(p) Market demand Market supply ps= p* $t pb qt = q* As market demand bees l