BackQuantitative Analysis of Taxes definitions
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1/15BackSkip to main contentBackEquilibrium
Occurs where quantity supplied equals quantity demanded, determining the market price and quantity after a tax is imposed. Supply Curve
Graphical representation showing how the quantity offered by sellers changes with price, shifting when a tax is applied. Demand Curve
Graphical representation showing how the quantity desired by buyers changes with price, used to find equilibrium. Tax
A fixed amount per unit imposed on suppliers or buyers, altering the supply or demand equation and market outcomes. Quantity Supplied
Amount sellers are willing to offer at a given price, adjusted downward when a tax is imposed on suppliers. Quantity Demanded
Amount buyers are willing to purchase at a given price, used to determine equilibrium after a tax. Equilibrium Price
Market price where supply equals demand; after a tax, this is the price paid by the non-taxed party. Equilibrium Quantity
Market quantity where supply equals demand; determined by solving the adjusted supply and demand equations. Price Paid by Buyers
Amount consumers pay after a tax, equal to the new equilibrium price in a taxed market. Price Received by Sellers
Amount suppliers keep after subtracting the tax from the equilibrium price, reflecting reduced earnings. Supply Equation
Algebraic formula relating price to quantity supplied, modified by replacing price with price minus tax. Demand Equation
Algebraic formula relating price to quantity demanded, used to solve for equilibrium in taxed scenarios. Graph Shift
Movement of the supply curve due to a tax, resulting in new equilibrium price and quantity. Non-Taxed Party
Market side not directly affected by the tax, whose equilibrium price reflects the amount paid or received. Practice Problem
Exercise applying steps to solve for buyer and seller prices in a taxed market, reinforcing quantitative analysis.
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