Learning objectives
Show the effect of a specific indirect tax on a demand and supply diagram and calculate the tax revenue collected
Calculate the incidence of a specific tax on consumers and producers and explain how PED and PES decide the split
Analyse the effects of a producer subsidy on price, quantity and government spending, and how elasticity decides who gains
Evaluate indirect taxes and subsidies as ways for a government to change consumption and production
(A Level) Distinguish an ad valorem tax from a specific tax and show how it pivots the supply curve
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