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    4. application of elasticity in terms of government tax
    application of elasticity in terms of government tax

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    0  Views: 547 Answers: 1 Posted: 10 years ago
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      Elasticity is one of the most important concepts in neoclassical economic theory. It is useful in understanding the incidence of indirect taxation, marginal concepts as they relate to the theory of the firm, and distribution of wealth and different types of goods as they relate to the theory of consumer choice. Elasticity is also crucially important in any discussion of welfare distribution, in particular consumer surplus, producer surplus, or government surplus. http://en.wikipedia.org/wiki/Elasticity_(economics) 



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