Instructional Video

Khan Academy: Taxes and Perfectly in Elastic Demand

Curated by ACT

The burden of a tax falls most heavily on someone who can't adjust to a price change. That means buyers bear a bigger burden when demand is more inelastic, and sellers bear a bigger burden when supply is more inelastic.

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Classroom Considerations
  • Knovation Readability Score: 4 (1 low difficulty, 5 high difficulty)
  • The intended use for this resource is Instructional