Economics Department

Essays on indirect taxes

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This week's essay

(a)        Why might the government put a tax on a good?                                   

 (10 marks)

(b)        Explain using diagrams what determines how much of the tax can be passed on to consumers?                          

(10 marks)

Other essays

Using suitable diagrams, show when the burden of a flat rate tax on a good:

(a)    Falls entirely on the consumer                                                                     

(6 marks)

(b)   Falls entirely on the producer                                                                     

(6 marks)

(c)    Is divided between the consumer and producer                                          

(8 marks)