Introduction 4
- Lecture1.1
  
  Introduction
- Lecture1.2
  
  Downloading Jupyter Notebook
- Lecture1.3
  
  Basic Python
- Lecture1.4
  
  Challenge Solution
Production Possibilities Frontier 4
- Lecture2.1
  
  Introduction
- Lecture2.2
  
  Loops
- Lecture2.3
  
  Production Possibilities Frontier
- Lecture2.4
  
  Solution
Trade 3
- Lecture3.1
  
  Introduction
- Lecture3.2
  
  Trade
- Lecture3.3
  
  New Production Possibilities Frontier
Demand 4
- Lecture4.1
  
  Introduction
- Lecture4.2
  
  Introduction to Demand
- Lecture4.3
  
  The Demand Schedule
- Lecture4.4
  
  Shifts Along the Demand Line
Supply 2
- Lecture5.1
  
  Introduction
- Lecture5.2
  
  Supply Schedule
Equilibrium 4
- Lecture6.1
  
  Introduction
- Lecture6.2
  
  Introducing Sympy
- Lecture6.3
  
  Equilibrium
- Lecture6.4
  
  Surplus and Shortage
Curve Movements 4
- Lecture7.1
  
  Introduction
- Lecture7.2
  
  Introducing Functions
- Lecture7.3
  
  Creating the Equilibrium Function
- Lecture7.4
  
  Creating the Shift Function
Elasticity and Revenue 5
- Lecture8.1
  
  Introduction
- Lecture8.2
  
  Elasticity Equation
- Lecture8.3
  
  Elasticity
- Lecture8.4
  
  Mapping Revenue
- Lecture8.5
  
  Solution
Taxes 7
- Lecture9.1
  
  Introduction
- Lecture9.2
  
  Solving for Two Different Prices
- Lecture9.3
  
  Solving for Two Different Prices Part 2
- Lecture9.4
  
  Plotting the Tax Model
- Lecture9.5
  
  Plotting the Tax Model Part 2
- Lecture9.6
  
  Tax Incidence
- Lecture9.7
  
  Solution
Consumer and Producer Surplus 8
- Lecture10.1
  
  Introduction
- Lecture10.2
  
  Creating a Class
- Lecture10.3
  
  Creating a Class Part 2
- Lecture10.4
  
  If Statements
- Lecture10.5
  
  Surplus Basics
- Lecture10.6
  
  Surplus Basics Part 2
- Lecture10.7
  
  Plotting Surplus
- Lecture10.8
  
  Plotting Surplus Part 2
Imports and Exports 4
- Lecture11.1
  
  Introduction
- Lecture11.2
  
  Creating a Supply and Demand Class
- Lecture11.3
  
  Creating the International Functionality
- Lecture11.4
  
  Plotting Surplus
Tariffs 2
- Lecture12.1
  
  Introduction
- Lecture12.2
  
  Solution

Tax Incidence

Who pays the most in taxes? The answer depends on the elasticity of the different curves. The following

link

gives a good explanation of how tax incidence changes with elasticity. The short answer is that demand being inelastic causes more to fall on consumers, as well as supply being elastic. The opposite applies to the producers. Let’s check out what different curves look for tax burdens.

EquilibriumTax(10-p,p*2,0,10,4)

EquilibriumTax(10-p*2,p,0,5,4)

Look at that last example, the tax is so high there is almost no revenue collected by the government. The industry is practically dead! This leads to the idea of the Laffer Curve, which shows how at some point taxes being too high actually creates less tax revenue.

Challenge

Create a function that finds tax revenue for a given tax rate. Once you have that created, plot taxes on the x-axis and tax revenue on the y-axis. This will be the Laffer Curve.

Prev Plotting the Tax Model Part 2

Next Solution

Economics

Challenge

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Economics

Introduction 4

Production Possibilities Frontier 4

Trade 3

Demand 4

Supply 2

Equilibrium 4

Curve Movements 4

Elasticity and Revenue 5

Taxes 7

Consumer and Producer Surplus 8

Imports and Exports 4

Tariffs 2

Tax Incidence

Challenge

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