Supply and Demand with Taxes

[@SeemaSingh-if5pz]

Nice explanation 😊 thanks for your explanation ☺️☺️🙏🙏

[@zeddiversity1585]

Great lesson. Thank you 🙏👍

[@shanghongcao]

Thank you for your video. When the tax is increased from $12 → $24, the new supply curve becomes Qs= 6P-344. The new equilibrium point with the demand curve is (P=243, Q=1,114). The new tax revenue is: 24*1114=$ 26,736 The tax revenue is indeed increased from $13,584 to $26,736 when the tax rate is increased from $12 to $24, but not yet doubled.

[@arnoldhite]

Tax revenue will never double since equilibrium quantity will always fall. If you pick a unit tax high enough, the tax revenue will actually fall. You can work out the math or just see it visually. If the unit tax is high enough, equilibrium price will be extremely high on the demand curve with very little quantity.

[@amantekle127]

Wonderful video. Thank you!

[@ayeshahs.9468]

Thanks ... please discuss also inelastic & elastic conditions.