How to calculate Excise Tax and determine Who Bears the Burden of the Tax

Tutorial on how to calculate total revenue from taxes. The animation shows how total revenue changes with elasticity It shows how the share between producer and consumer when the demand for elasticity changes too.
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[@alanaaar]

Thank you sooo much!! Ugh why is this so much easier to understand for free than the actual person that im paying in college.

[@yamkelatyhomfa6480]

tell me about it :(

[@AbyssalSoda]

Lmao, college in the modern era is basically: KZbin

[@MsNadi10]

Sometimes I just think that it would be better to get a course's curriculum from the university website and then find KZbin videos according to each topic. Not even textbooks are helpful nowadays. They just basically beat around the bush.

[@TheGarfield1980]

Truly grateful. This is so easy to understand, spent 3 days trying with integration, and 3 hours of lecture in college. Here it took 7 mins. God bless u.

[@boldapples]

Thank you so much. My teacher went over this extremely quickly in class, making it hard to keep up. Now, I understand everything after watching your simple example. :)

[@SnowVillageMusic]

Your video lectures on statistics got me a solid grade in my intro to statistics class. Same with your microeconomics. I'd love to see you take on macro-economic principles as well!

[@brokenarrowmember]

Great video, i'm taking Microeconomics online and i had to figure this out in a book so it was harder to understand by just reading it. visually seeing how to do it is so much better.

[@abubakarabshiri8666]

This has enabled me master almost everything before stepping in a class,courtesy of the ongoing lecturers` strike in Kenya

[@FlippinKitty]

You managed to teach me more in 7 minutes than hours I spent on my professors material. Thank you!!!!!

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im now studying MICROECONOMICS for my exam tomorrow . I find this really help me . Thanks a LOT !

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My professor's entire lecture condensed down to 7 min and it's somehow more understandable. Thank you

[@tylerdiehl1]

You've actually explained this while other videos just discuss it THANK YOU

[@alexamarouf5527]

This was a very relevant thing to help me catch up with relearning the tasks before my exam. Thank you!

[@user-cq3kg8uc4z]

Thank you! You have helped me to figure tax incidence much easier than my professor herself could

[@raheelahmad4029]

In animated way the illustration is very understandable but the sequence you maintain in the video is awesome.

[@transeuntestenebris]

oh my god i read the book and it was so so hard to understand, thank you for this video! it truly helps me understanding why it works this way!

[@kc3669]

wow. i believe in miracles now. Thank you for being a better teacher than my textbook.

[@MsAngel419]

Thank you so much! I didn't think it would actually be this easy to do. This really helped me with my homework.

[@ketypetrus4790]

Thank you so much, You have no idea how much this video helped me prepare for my test. I'm going to ace it. :)

[@b.k.1925]

Thank you for your fantastic video on how to determine who bears the burden of tax. You have been immense help! Thumbs up emoji :)

[@johannanekaro6690]

this is so helpful for me i need more to prepare for my exam 1st june. thank you waiting for more videos.

[@TheTouchReviewz]

These videos are extremely helpful. Thanks. I appreciate it a ton!

[@adamlee97]

thanks man, you saved my life! tomorrow is my final and i finally understand it.

[@gracievelez3264]

Thank you so much this really helped me. I was wondering what a perfectly elastic demand would look like?

[@saktivelann]

You've done a great job keeping this simple! Cheers!

[@sabinasuleyman6347]

thanks a lot, years later I can still get the benefit of this video.

[@yonatanmathewos2123]

please please Please. Add more videos on various Topics related with Economics. You are awesome.

[@asiyakhatun2677]

Assalamu alikumm sir. Thank you so much for this video. It helps to understand how to calculate incidence of taxation easier ❤️. We want more videos like this ❤️❤️❤️.

[@veronikamikulasikova84]

The best explanation of the tax burden!!! Thanks..

[@ArmenMkr]

The best video so far and I have watches many of them. The best explanation!!! Thank you.

[@nyienettah4081]

this came to my rescue, its all so simple now, thank you!

[@kohsuzuki1438]

David Longstreet , thank you for helping me with economics today.

[@coupdefoudre2326]

Still helpful after 9 years

[@ashfaqimtiyaz5405]

Thanks man...Really helpful Love from Africa ❤❤

[@avikrishna5029]

thanks dude, great graphics and really well explained

[@finehasmsanya9117]

mission accomplished thanks my 007.....it has been real burden, i appreciate your works

[@meghansward]

This helped so much with my assignment! thank you:)

[@economicsfun]

Meghan w You are very welcome. Hopefully, you will get a chance to like and share the videos. It will help other students find the videos. Good luck in your studies too.

[@lindanimaqetuka757]

thanx so much. u've made it simpler and fun

[@StarringMaja]

You explain everything so nicely and smoothly. This was really helpful, thank you!

[@thefrenchfryguy9959]

How are you doing 8 years later?😂

[@MisterThisGuy]

Great videos, they help a lot. My one request would be that you include some intuition behind these trends (e.g. inelastic products have the highest consumer tax burden because their quantity demanded remains constant).

[@sahifanadeem9231]

Hey!! Your video is great and it has helped me grasp this concept easily. I need to write a research paper as below: The impact of sales tax on the consumer depends on the elasticity of demand and supply. State three products in Canada that are subjected to sales tax. Who bears the burden of these taxes? Why? If necessary illustrate with diagrams. For this question, I have chosen 3 products as gasoline, cigarettes and alcohol as there is much to research and write about them..... (continued)

[@nades11]

YOU ARE SO MUCH MORE AWESOME THAN MY TEACHER!!! thank you so much!!!!!

[@economicsfun]

Thank you for the compliments. I do have some videos on Monopolies. If you go to the channel statisticsfun, then you will see a playlist on monopolies. KZbin does not let me add links.

[@economicsfun]

That is a good idea -- to do the same type of analysis using equations and not just graphs. I don't have that done yet, but plan to in the very near future.

[@dchangebegins]

Hey I have seen many videos of your including statistics also. Must tell u..ur doin a great job thnks. Keep uploading! M gona subscribe it.

[@CG-ck7rc]

Damn I wish lectures went like this. Straight forward modules

[@mariaarellano9896]

Hi, I have a question like this and I can't figure out the answer, "90% of the tax the government imposed on good x was successfully passed on to consumers by the company." I think is a relatively inelastic demand, but I am not sure. Could you help me, please?

[@economicsfun]

Good question. I have an entire playlist on elasticity. I added a link to that playlist in this videos description. Hope that helps.

[@MegaMonitoring]

I found the Video very educating and helpful. But at the same time i would like to pose to you this question. How do you explain the impacts of tax on consumer surplus when the supply curve is constant or horizontal.

[@Abutton121]

Thank you so much :) I got confused in class this cleared things up for me

[@economicsfun]

You are very welcome. I hear that from students a lot, they get confused in class. I have always thought economics lends itself to animation. Good luck in your studies too! Make sure you like MyBookSucks on FaceBook (see link in video description). This will help others find the educational videos.

[@bvguizar]

Thank you very much, I have a question for this if you could help me that would be great. I have a start equilibrium price of 5 and equilibrium quantity of 4, we are told that the government now levies a per unit tax, the impact of which is to reduce the supply of the good at any price by 3 units. The new equilibrium price is 5.5 and equilibrium quantity is 2. How can I estimate the consumer and producer burden? Is this OK? consumer burden (5.5-5)*2 =1 producer burden (5.5-4)*2=3, I have doubt with the producer burden. Thank you very much

[@MVPfrommlis]

I love this channel! Great videos! Super helpful

[@lila6029]

Great explanation! Thank you so much!

[@hayenbui5920]

Thank you so mcuh for this helpful video ⭐️⭐️

[@AlmostAPro5]

Hi quick question, how did you know price went up from 8 to 9 in the first example? Like is there math involved in that or is it because the numbers on the graph tell you

[@aldrizafariq7005]

hello, what will happen if the supply curve is the one who inelastic?

[@sarahcoughlin8303]

Awesome video. Thanks!

[@payalbasu467]

Thank you so much! This video helped me a lot!

[@lucyemutie5879]

This is so nice, what of when the supply is elastic

[@crystalyu3369]

thank you for helping me not fail my ap econ exam tmrw

[@nomsy9279]

I wonder how people can dislike this it is amazing

[@noahp7062]

great video, thanks man.

[@zangetsu3354]

5 shitty econ professors didn't like the fact that this video is more useful than they are

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who are you? you are God

[@SecureOpsWizard]

idiot

[@mahirtrivedi]

Cannot just believe that this was explained 11 years ago

[@sleepy_kenma2291]

This is so useful! Thanks a lot❤️

[@_tyler-_-]

Sounds like the guy from burn notice... good vid thanks :)

[@maybellinemassey504]

Would it be possible to post a lesson regarding capital investment between two countries using a graph, and demonstrating the gains and transfer of benefits? As well as a graph which demonstrates what happens when the government puts a tax on foreign investors' capital?

[@dipanjansaha7931]

Can anyone provide me a rational explanation for the following question or on what perspective this should be answered. Why will government raise more tax revenue if it applies a tax to a good with inelastic demand than if it applies the tax to a good with elastic demand? Is it because of comparatively smaller dead weight loss, or what?

[@InstTaxSolutionsLLC]

This video provides a helpful tutorial about calculating total revenue from taxes and graphs for excise tax.

[@economicsfun]

Yes, that is a good idea and interesting for me to consider. You are referring to "Capital Market Equilibrium", right? I do have a lesson with "Edgeworth Box" which sort of gets to your question. You can search the channel economicsfun to find the video.

[@MrBontekai]

the more inelastic demand is the less the dead weight loss from the per-unit tax. can you explain why?

[@cristaralu]

Hello, what happenes in the case of VAT? isn't VAT indirect and supported entirely by consumers? so if equilibrium price is $8 and VAT is let's say 10% the new price will be 8.8 so who bears 0.8? how can this be represented?

[@aaronpawlinski7280]

If I'm given the government revenue initially, how would I be able to work backwards and find the excise tax?

[@economicsfun]

That is wonderful to hear. Good luck in your classes too. By the way, where do you go to school (country?)

[@osinkem5397]

Thank you for the crystal explanation of this topic.

[@osinkem5397]

Please sir, can you do a video on the welfare losses associated with the limiting of number firms, thank you.

[@arevalodenny]

hi i have a question. if the retail price of cigarette is $15 and $6 is retained by supplier and $9.00 is tax. where am i gonna start? which is my equilibrium price?

[@guilhermeadan2329]

extremely clear. very good

[@mohitmaheshwari6025]

which editing software is used?

[@abhinavrajkumar6845]

Hi, Is there a way to calculate the tax burden on consumers and producers MATHEMATICALLY?. INSTEAD OF USING GRAPHS ??

[@ayshaazami5431]

You are an angel!

[@economicsfun]

Great to hear and good luck 007!

[@manojhanm7803]

pls answer me for this questiontax on alcohol is the most effective way to reduce alcohol abuse in our society. Do you agree or disagree? Explain why or why not.through the demand and supply curve

[@kabultimes8530]

Hi sir, wish u are doing well. I have given a question that is how taxes on buyers and sellers affects market outcome? If the demand is perfectly inelastic, perfectly elastic, elastic and inelastic.

[@i0sKar]

Is there any formula to calculate tax incidence? I can't do it with a graph because it is a tax of 4€ per unit and the eq price is 80€ and eq quantity is 80 and it's impossible to see the incidence clearly in a graph.

[@LoveAfghanistan1]

You are amazing !

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you are the best!

[@user-dw7oh5sp5u]

u slayed so hard with this video!!!!!! :)))))))

[@WillUMisMeWhnImGone]

This saved my life XD thank you!!!

[@sahifanadeem9231]

But they are all inelastic. Do you have an elastic products in mind that I can do a lot of research on and explain it based on how it affects any government like Canada?

[@kkscoiii]

@economicsfun Hi！ I wanna ask....how can I know the demand curve is elastic or inelastic?

[@alexisclark257]

This helped me so much!

[@TheeBigBishop]

What graphing program is he using if any?

[@Scrungge]

What determines the math behind the burden the producer and consumer have? Why is it like it is? Why is it optimal for the consumer to only pay 1/3rd and the producer 2/3rds?

[@economicsfun]

You are very welcome. I appreciate your feedback and it is much appreciated. If you have not done so, make sure you like MyBookSucks on Facebook (see link in video description). This will help others find the educational videos. Good luck in your courses too!

[@Essosa_]

How do I calculate subsidy I was given a question,gives Qd=497-2p Qs=P-34 Determine the equilibrium price and quantity with tax 6$ and subsidy 3$ How can I solve this please?

[@benjaminkatakyie2598]

can u do it again on taxes because im lil confuse

[@francoleung97]

good job ^^ it helps me a lot , thx

[@economicsfun]

Supply is impacted because producers have to charge a higher price (price + tax). In this case it is a $3 tax above the market equilibrium price. At a higher price quantity demanded is less. The producers (or supply) actually on gets $6, so they are willing to supply less.

[@theperfectionist]

Thank you. That helped me.

[@economicsfun]

You are very welcome. Make sure you like MyBookSucks on Facebook (you can see the link in the video description). This will help me spread the word about the free videos.