{
  "id": "tax-incidence-elasticity",
  "name": "Tax incidence and elasticity (comparison)",
  "unit": "micro",
  "unitName": "Unit 2 · Microeconomics",
  "topic": "Government intervention",
  "hl": false,
  "description": "The burden of an indirect tax falls mostly on whichever side of the market is more price inelastic.",
  "keywords": [
    "tax incidence",
    "tax burden",
    "elasticity",
    "inelastic demand",
    "elastic demand",
    "consumer burden",
    "producer burden",
    "indirect tax"
  ],
  "schemaUrl": "https://graphs.lectere.com/api/v1/templates/tax-incidence-elasticity",
  "previewUrl": "https://graphs.lectere.com/thumbs/tax-incidence-elasticity.svg",
  "editorUrl": "https://graphs.lectere.com/graph/tax-incidence-elasticity/",
  "params": [
    {
      "key": "compare",
      "label": "Compare",
      "default": "demand",
      "type": "enum",
      "options": [
        {
          "value": "demand",
          "label": "Inelastic vs elastic demand"
        },
        {
          "value": "supply",
          "label": "Inelastic vs elastic supply"
        }
      ]
    },
    {
      "key": "tax",
      "label": "Tax per unit",
      "default": 2,
      "group": "Tax",
      "type": "number",
      "min": 0.5,
      "max": 3,
      "step": 0.1
    },
    {
      "key": "incidence",
      "label": "Split the tax into consumer and producer burden",
      "default": true,
      "type": "boolean"
    },
    {
      "key": "revenue",
      "label": "Shade tax revenue",
      "default": true,
      "type": "boolean"
    },
    {
      "key": "dwl",
      "label": "Shade welfare loss",
      "default": true,
      "type": "boolean"
    },
    {
      "key": "marker",
      "label": "Mark the tax per unit",
      "default": false,
      "type": "boolean"
    }
  ],
  "defaults": {
    "compare": "demand",
    "tax": 2,
    "incidence": true,
    "revenue": true,
    "dwl": true,
    "marker": false
  },
  "panels": [
    {
      "id": "inelastic",
      "title": "Inelastic demand",
      "xLabel": "Quantity",
      "yLabel": "Price",
      "xRange": [
        0,
        10
      ],
      "yRange": [
        0,
        10
      ],
      "axisKeys": {
        "x": "inelastic:x",
        "y": "inelastic:y"
      }
    },
    {
      "id": "elastic",
      "title": "Elastic demand",
      "xLabel": "Quantity",
      "yLabel": "Price",
      "xRange": [
        0,
        10
      ],
      "yRange": [
        0,
        10
      ],
      "axisKeys": {
        "x": "elastic:x",
        "y": "elastic:y"
      }
    }
  ],
  "labels": [
    {
      "key": "inelastic:title",
      "default": "Inelastic demand",
      "hint": "Panel title",
      "panel": "inelastic"
    },
    {
      "key": "inelastic:y",
      "default": "Price",
      "hint": "Vertical axis",
      "panel": "inelastic"
    },
    {
      "key": "inelastic:x",
      "default": "Quantity",
      "hint": "Horizontal axis",
      "panel": "inelastic"
    },
    {
      "key": "inelastic.consumer",
      "default": "Consumer burden",
      "hint": "Shaded area",
      "panel": "inelastic"
    },
    {
      "key": "inelastic.producer",
      "default": "Producer burden",
      "hint": "Shaded area",
      "panel": "inelastic"
    },
    {
      "key": "inelastic.dwl",
      "default": "WL",
      "hint": "Shaded area",
      "panel": "inelastic"
    },
    {
      "key": "inelastic.d",
      "default": "D",
      "hint": "Curve",
      "panel": "inelastic"
    },
    {
      "key": "inelastic.s",
      "default": "S",
      "hint": "Curve",
      "panel": "inelastic"
    },
    {
      "key": "inelastic.stax",
      "default": "S + tax",
      "hint": "Curve",
      "panel": "inelastic"
    },
    {
      "key": "inelastic.e1:y",
      "default": "P_e",
      "hint": "Vertical-axis value",
      "panel": "inelastic"
    },
    {
      "key": "inelastic.e1:x",
      "default": "Q_e",
      "hint": "Horizontal-axis value",
      "panel": "inelastic"
    },
    {
      "key": "inelastic.e2:y",
      "default": "P_c",
      "hint": "Vertical-axis value",
      "panel": "inelastic"
    },
    {
      "key": "inelastic.e2:x",
      "default": "Q_t",
      "hint": "Horizontal-axis value",
      "panel": "inelastic"
    },
    {
      "key": "inelastic.pp:y",
      "default": "P_p",
      "hint": "Vertical-axis value",
      "panel": "inelastic"
    },
    {
      "key": "elastic:title",
      "default": "Elastic demand",
      "hint": "Panel title",
      "panel": "elastic"
    },
    {
      "key": "elastic:y",
      "default": "Price",
      "hint": "Vertical axis",
      "panel": "elastic"
    },
    {
      "key": "elastic:x",
      "default": "Quantity",
      "hint": "Horizontal axis",
      "panel": "elastic"
    },
    {
      "key": "elastic.consumer",
      "default": "Consumer burden",
      "hint": "Shaded area",
      "panel": "elastic"
    },
    {
      "key": "elastic.producer",
      "default": "Producer burden",
      "hint": "Shaded area",
      "panel": "elastic"
    },
    {
      "key": "elastic.dwl",
      "default": "WL",
      "hint": "Shaded area",
      "panel": "elastic"
    },
    {
      "key": "elastic.d",
      "default": "D",
      "hint": "Curve",
      "panel": "elastic"
    },
    {
      "key": "elastic.s",
      "default": "S",
      "hint": "Curve",
      "panel": "elastic"
    },
    {
      "key": "elastic.stax",
      "default": "S + tax",
      "hint": "Curve",
      "panel": "elastic"
    },
    {
      "key": "elastic.e1:y",
      "default": "P_e",
      "hint": "Vertical-axis value",
      "panel": "elastic"
    },
    {
      "key": "elastic.e1:x",
      "default": "Q_e",
      "hint": "Horizontal-axis value",
      "panel": "elastic"
    },
    {
      "key": "elastic.e2:y",
      "default": "P_c",
      "hint": "Vertical-axis value",
      "panel": "elastic"
    },
    {
      "key": "elastic.e2:x",
      "default": "Q_t",
      "hint": "Horizontal-axis value",
      "panel": "elastic"
    },
    {
      "key": "elastic.pp:y",
      "default": "P_p",
      "hint": "Vertical-axis value",
      "panel": "elastic"
    }
  ],
  "elements": [
    {
      "key": "inelastic.consumer",
      "kind": "area",
      "label": "Consumer burden"
    },
    {
      "key": "inelastic.producer",
      "kind": "area",
      "label": "Producer burden"
    },
    {
      "key": "inelastic.dwl",
      "kind": "area",
      "label": "WL"
    },
    {
      "key": "inelastic.d",
      "kind": "curve",
      "label": "D"
    },
    {
      "key": "inelastic.s",
      "kind": "curve",
      "label": "S"
    },
    {
      "key": "inelastic.stax",
      "kind": "curve",
      "label": "S + tax"
    },
    {
      "key": "inelastic.e1",
      "kind": "point"
    },
    {
      "key": "inelastic.e2",
      "kind": "point"
    },
    {
      "key": "inelastic.pp",
      "kind": "point"
    },
    {
      "key": "elastic.consumer",
      "kind": "area",
      "label": "Consumer burden"
    },
    {
      "key": "elastic.producer",
      "kind": "area",
      "label": "Producer burden"
    },
    {
      "key": "elastic.dwl",
      "kind": "area",
      "label": "WL"
    },
    {
      "key": "elastic.d",
      "kind": "curve",
      "label": "D"
    },
    {
      "key": "elastic.s",
      "kind": "curve",
      "label": "S"
    },
    {
      "key": "elastic.stax",
      "kind": "curve",
      "label": "S + tax"
    },
    {
      "key": "elastic.e1",
      "kind": "point"
    },
    {
      "key": "elastic.e2",
      "kind": "point"
    },
    {
      "key": "elastic.pp",
      "kind": "point"
    }
  ],
  "stats": null,
  "example": {
    "template": "tax-incidence-elasticity",
    "params": {
      "compare": "demand",
      "tax": 2,
      "incidence": true,
      "revenue": true,
      "dwl": true,
      "marker": false
    }
  }
}