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Total tax revenue 60 - PowerPoint PPT Presentation

Elasticity and Excise Taxes Who ends up paying for an excise tax?

Elasticity and Excise Taxes Who ends up paying for an excise tax?. 1. EXCISE TAX ON CIGARETTES. P. Demand- Inelastic Supply- Unitary. $10 8 6 5 4 2. S. CS. $2 TAX on Producers. D. 8. 10. Q. 2. EXCISE TAX ON CIGARETTES. P. S 1. $10 8 7 6 5 4 2. S. CS After.

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Total tax revenue 60 - PowerPoint PPT Presentation

Elasticity and Excise Taxes Who ends up paying for an excise tax?