Read the sections on Demand, Supply, Market Equilibrium, and Government Intervention and Disequilibrium for a mathematical exposition of the demand and supply model, clicking through to the next when you have finished each page. The chapter also covers price ceilings and price floor analysis as well as quantity regulations.
Taxation Impact on Economic Output
Similarly elastic supply and demand
Generally consumers and
producers are neither perfectly elastic or inelastic, so the tax burden
is shared between the two parties in varying proportions. If one party
is comparatively more inelastic than the other, they will pay the
majority of the