{
  "id": "indirect-tax-ad-valorem",
  "name": "Ad valorem (percentage) indirect tax",
  "unit": "micro",
  "unitName": "Unit 2 · Microeconomics",
  "topic": "Government intervention",
  "hl": false,
  "description": "A percentage tax (e.g. VAT/GST) pivots the supply curve upwards: the tax per unit grows as the price rises.",
  "keywords": [
    "ad valorem tax",
    "percentage tax",
    "VAT",
    "GST",
    "sales tax",
    "indirect tax",
    "pivot",
    "tax incidence",
    "welfare loss"
  ],
  "schemaUrl": "https://graphs.lectere.com/api/v1/templates/indirect-tax-ad-valorem",
  "previewUrl": "https://graphs.lectere.com/thumbs/indirect-tax-ad-valorem.svg",
  "editorUrl": "https://graphs.lectere.com/graph/indirect-tax-ad-valorem/",
  "params": [
    {
      "key": "rate",
      "label": "Tax rate (%)",
      "default": 40,
      "group": "Tax",
      "type": "number",
      "min": 10,
      "max": 100,
      "step": 5
    },
    {
      "key": "revenue",
      "label": "Shade tax revenue",
      "default": true,
      "type": "boolean"
    },
    {
      "key": "incidence",
      "label": "Split the tax into consumer and producer burden",
      "default": false,
      "type": "boolean"
    },
    {
      "key": "dwl",
      "label": "Shade welfare loss",
      "default": true,
      "type": "boolean"
    },
    {
      "key": "marker",
      "label": "Mark the tax per unit",
      "default": true,
      "type": "boolean"
    },
    {
      "key": "dEl",
      "label": "Demand",
      "default": "normal",
      "group": "Shape",
      "type": "enum",
      "options": [
        {
          "value": "elastic",
          "label": "Relatively elastic"
        },
        {
          "value": "normal",
          "label": "Standard"
        },
        {
          "value": "inelastic",
          "label": "Relatively inelastic"
        }
      ]
    },
    {
      "key": "sEl",
      "label": "Supply",
      "default": "normal",
      "group": "Shape",
      "type": "enum",
      "options": [
        {
          "value": "elastic",
          "label": "Relatively elastic"
        },
        {
          "value": "normal",
          "label": "Standard"
        },
        {
          "value": "inelastic",
          "label": "Relatively inelastic"
        }
      ]
    }
  ],
  "defaults": {
    "rate": 40,
    "revenue": true,
    "incidence": false,
    "dwl": true,
    "marker": true,
    "dEl": "normal",
    "sEl": "normal"
  },
  "panels": [
    {
      "id": "main",
      "title": null,
      "xLabel": "Quantity",
      "yLabel": "Price",
      "xRange": [
        0,
        10
      ],
      "yRange": [
        0,
        10
      ],
      "axisKeys": {
        "x": "main:x",
        "y": "main:y"
      }
    }
  ],
  "labels": [
    {
      "key": "main:y",
      "default": "Price",
      "hint": "Vertical axis",
      "panel": "main"
    },
    {
      "key": "main:x",
      "default": "Quantity",
      "hint": "Horizontal axis",
      "panel": "main"
    },
    {
      "key": "main.revenue",
      "default": "Tax revenue",
      "hint": "Shaded area",
      "panel": "main"
    },
    {
      "key": "main.dwl",
      "default": "WL",
      "hint": "Shaded area",
      "panel": "main"
    },
    {
      "key": "main.d",
      "default": "D",
      "hint": "Curve",
      "panel": "main"
    },
    {
      "key": "main.s",
      "default": "S",
      "hint": "Curve",
      "panel": "main"
    },
    {
      "key": "main.stax",
      "default": "S + 40% tax",
      "hint": "Curve",
      "panel": "main"
    },
    {
      "key": "main.e1:y",
      "default": "P_e",
      "hint": "Vertical-axis value",
      "panel": "main"
    },
    {
      "key": "main.e1:x",
      "default": "Q_e",
      "hint": "Horizontal-axis value",
      "panel": "main"
    },
    {
      "key": "main.e2:y",
      "default": "P_c",
      "hint": "Vertical-axis value",
      "panel": "main"
    },
    {
      "key": "main.e2:x",
      "default": "Q_t",
      "hint": "Horizontal-axis value",
      "panel": "main"
    },
    {
      "key": "main.pp:y",
      "default": "P_p",
      "hint": "Vertical-axis value",
      "panel": "main"
    },
    {
      "key": "main.tax",
      "default": "tax",
      "hint": "Arrow / line",
      "panel": "main"
    }
  ],
  "elements": [
    {
      "key": "main.revenue",
      "kind": "area",
      "label": "Tax revenue"
    },
    {
      "key": "main.dwl",
      "kind": "area",
      "label": "WL"
    },
    {
      "key": "main.d",
      "kind": "curve",
      "label": "D"
    },
    {
      "key": "main.s",
      "kind": "curve",
      "label": "S"
    },
    {
      "key": "main.stax",
      "kind": "curve",
      "label": "S + 40% tax"
    },
    {
      "key": "main.e1",
      "kind": "point"
    },
    {
      "key": "main.e2",
      "kind": "point"
    },
    {
      "key": "main.pp",
      "kind": "point"
    },
    {
      "key": "main.tax",
      "kind": "line",
      "label": "tax"
    }
  ],
  "stats": null,
  "example": {
    "template": "indirect-tax-ad-valorem",
    "params": {
      "rate": 40,
      "revenue": true,
      "incidence": false,
      "dwl": true,
      "marker": true,
      "dEl": "normal",
      "sEl": "normal"
    }
  }
}