Thank you for your video. When the tax is increased from $12 → $24, the new supply curve becomes Qs= 6P-344. The new equilibrium point with the demand curve is (P=243, Q=1,114). The new tax revenue is: 24*1114=$ 26,736 The tax revenue is indeed increased from $13,584 to $26,736 when the tax rate is increased from $12 to $24, but not yet doubled.
@arnoldhite6 жыл бұрын
Tax revenue will never double since equilibrium quantity will always fall. If you pick a unit tax high enough, the tax revenue will actually fall. You can work out the math or just see it visually. If the unit tax is high enough, equilibrium price will be extremely high on the demand curve with very little quantity.
@zeddiversity15852 жыл бұрын
Great lesson. Thank you 🙏👍
@SeemaSingh-if5pz Жыл бұрын
Nice explanation 😊 thanks for your explanation ☺️☺️🙏🙏
@amantekle1274 жыл бұрын
Wonderful video. Thank you!
@ayeshahs.94685 жыл бұрын
Thanks ... please discuss also inelastic & elastic conditions.