Sometimes I just think that it would be better to get a course's curriculum from the university website and then find UA-cam videos according to each topic. Not even textbooks are helpful nowadays. They just basically beat around the bush.
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.
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. :)
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!
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.
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.
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 ❤️❤️❤️.
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)
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.
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. UA-cam does not let me add links.
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.
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.
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).
consumers pay more tax burden with inelasteic demand, tax revenue rectangle is larger. producers pay more tax burden with elastic demand, tax revenue rectangle is smaller
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.
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.
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.
another option would be transportation (airline tickets are heavily taxes), gasoline (if you drive), train tickets, or even a bus ticket. These are all modes of transportation that are taxed.
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?
Elastic products are products that have a lot of choices, such as cell phones these days. Another good choice would be wine. While alcohol is regulated and taxes wine is elastic because there are so many choices and no one firm dominates the market.
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
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
Typically a tax levied on a consumer is a retail tax and yes it would be applied to the demand curve. A retail tax increases the price of a good and will reduce the quantity demanded of that product as well.
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!
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.
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?
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?
I'm having the same problem, Miguel. He's just using arbitrary numbers rather than Demand and Supply functions to show how he got the new Prices and Quantity. Did you ever find anything on it?
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?
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?
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.
Oscar, I am not sure I understand your question. The actual calculation would depend on the elasticity of demand and how sensitive demand is to changes in price. If demand is inelastic, then a tax will have little impact. If demand is elastic small tax will have a large impact.
Thank you sooo much!! Ugh why is this so much easier to understand for free than the actual person that im paying in college.
tell me about it :(
Lmao, college in the modern era is basically: UA-cam
Sometimes I just think that it would be better to get a course's curriculum from the university website and then find UA-cam videos according to each topic. Not even textbooks are helpful nowadays. They just basically beat around the bush.
Cannot just believe that this was explained 11 years ago
You managed to teach me more in 7 minutes than hours I spent on my professors material. Thank you!!!!!
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.
wow. i believe in miracles now. Thank you for being a better teacher than my textbook.
im now studying MICROECONOMICS for my exam tomorrow . I find this really help me . Thanks a LOT !
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. :)
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!
My professor's entire lecture condensed down to 7 min and it's somehow more understandable. Thank you
You explain everything so nicely and smoothly. This was really helpful, thank you!
How are you doing 8 years later?😂
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.
In animated way the illustration is very understandable but the sequence you maintain in the video is awesome.
This has enabled me master almost everything before stepping in a class,courtesy of the ongoing lecturers` strike in Kenya
This helped so much with my assignment! thank you:)
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.
The best video so far and I have watches many of them. The best explanation!!! Thank you.
thanks a lot, years later I can still get the benefit of this video.
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 ❤️❤️❤️.
You've actually explained this while other videos just discuss it THANK YOU
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!
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)
Thank you for your fantastic video on how to determine who bears the burden of tax. You have been immense help! Thumbs up emoji :)
Thank you! You have helped me to figure tax incidence much easier than my professor herself could
This was a very relevant thing to help me catch up with relearning the tasks before my exam. Thank you!
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.
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.
Still helpful after 9 years
this is so helpful for me i need more to prepare for my exam 1st june. thank you waiting for more videos.
Thank you so much, You have no idea how much this video helped me prepare for my test. I'm going to ace it. :)
mission accomplished thanks my 007.....it has been real burden, i appreciate your works
Thanks man...Really helpful
Love from Africa ❤❤
Thank you so much! I didn't think it would actually be this easy to do. This really helped me with my homework.
please please Please. Add more videos on various Topics related with Economics. You are awesome.
These videos are extremely helpful. Thanks. I appreciate it a ton!
this came to my rescue, its all so simple now, thank you!
thanks man, you saved my life!
tomorrow is my final and i finally understand it.
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. UA-cam does not let me add links.
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.
You just saved me from having a mental breakdown, thank you!!!
YOU ARE SO MUCH MORE AWESOME THAN MY TEACHER!!! thank you so much!!!!!
thanks dude, great graphics and really well explained
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.
David Longstreet , thank you for helping me with economics today.
The best explanation of the tax burden!!! Thanks..
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).
consumers pay more tax burden with inelasteic demand, tax revenue rectangle is larger. producers pay more tax burden with elastic demand, tax revenue rectangle is smaller
5 shitty econ professors didn't like the fact that this video is more useful than they are
+Jan Balbin PROF GOOOOOUPAAAH! FOR THREEEEEEEEEEEE FROM MILES AWAY NIGGA
You've done a great job keeping this simple! Cheers!
Damn I wish lectures went like this. Straight forward modules
Thank you so much :) I got confused in class this cleared things up for me
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.
I wonder how people can dislike this
it is amazing
thank you for helping me not fail my ap econ exam tmrw
thanx so much. u've made it simpler and fun
Great to hear and good luck 007!
That is wonderful to hear. Good luck in your classes too. By the way, where do you go to school (country?)
Thank you so much this really helped me. I was wondering what a perfectly elastic demand would look like?
who are you? you are God
idiot
when you're a mechanical engineering student and your econ elective barely makes a dent in your brain.. Thank you for your help kind sir!
+SS C You are very welcome. Hopefully you will get a chance to share and like the videos. This will help others find them.
Good question. I have an entire playlist on elasticity. I added a link to that playlist in this videos description. Hope that helps.
I love this channel! Great videos! Super helpful
This is so nice, what of when the supply is elastic
This is so useful! Thanks a lot❤️
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.
Thank you for the crystal explanation of this topic.
Please sir, can you do a video on the welfare losses associated with the limiting of number firms, thank you.
Thank you so mcuh for this helpful video ⭐️⭐️
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.
another option would be transportation (airline tickets are heavily taxes), gasoline (if you drive), train tickets, or even a bus ticket. These are all modes of transportation that are taxed.
Thank you so much! This video helped me a lot!
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?
extremely clear. very good
You are very welcome. Make sure you like MyBookSucks on FaceBook (see link in video description). This will help others find the educational videos.
Elastic products are products that have a lot of choices, such as cell phones these days. Another good choice would be wine. While alcohol is regulated and taxes wine is elastic because there are so many choices and no one firm dominates the market.
God really bless you
This video provides a helpful tutorial about calculating total revenue from taxes and graphs for excise tax.
Sounds like the guy from burn notice... good vid thanks :)
Great explanation! Thank you so much!
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
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
Awesome video. Thanks!
You are an angel!
u slayed so hard with this video!!!!!! :)))))))
@economicsfun Hi！ I wanna ask....how can I know the demand curve is elastic or inelastic?
If a tax is levied on the consumer, would the tax be added to the demand curve? or is it still added to supply?
Typically a tax levied on a consumer is a retail tax and yes it would be applied to the demand curve. A retail tax increases the price of a good and will reduce the quantity demanded of that product as well.
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!
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.
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?
which editing software is used?
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?
is there a video explaining the linear function itself? I kind of have an exam on this tomorrow and can't seem to find one....
hi how did your exam go?
I'm having the same problem, Miguel. He's just using arbitrary numbers rather than Demand and Supply functions to show how he got the new Prices and Quantity. Did you ever find anything on it?
Connor McFall i need help with that too :(
eeyoresv I think I just gave up trying to figure it out for my exam. I could never find anything helpful on it :/
hello, what will happen if the supply curve is the one who inelastic?
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?
This helped me so much!
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?
Very helpful information thanx
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.
the more inelastic demand is the less the dead weight loss from the per-unit tax. can you explain why?
You are amazing !
Oscar, I am not sure I understand your question. The actual calculation would depend on the elasticity of demand and how sensitive demand is to changes in price. If demand is inelastic, then a tax will have little impact. If demand is elastic small tax will have a large impact.
good job ^^ it helps me a lot , thx
This saved my life XD thank you!!!