If the demand is elastic, who bears most of the tax burden?
Tax burden is carried by whoever has the greater inelasticity.
good point… and its true. But Schweser video says the other way arround and that is mistake.
Have you come across a question which ask us to calculate the amount of consumer or producer surplus?
Absolutely never! And that is 4100 q bank questions and 4 sample exams later… but i have had the concept tested.
is it half of QTY* (diffirence in price)?
I have come across a question on calcuating consumer and product suprlus… It is the formula for calcuating the area of a traingle = (base x height) / 2