Exams

Badminton is national game of Indonesia.

Given below are some countries with their national games ::

Country                              National Game

Japan                                 Judo.

England                             Cricket.

Spain                                Bull Fighting.

Sri Lanka                           Volley Ball.

Indonesia                           Badminton.

China                                 Table Tennis.

Bhutan                               Archery.

USA                                   Baseball.

Canada                               Ice Hockey.

Bangladesh                         Kabaddi.

Pakistan                             Hockey.

Scotland                             Rugby Football.

Germany                            Football.

Argentina                            Pato.

Only if either demand or supply was either completely elastic or inelastic will the tax burden fall entirely on either the buyer or the seller. Between these 2 extremes, tax incidence varies continuously from a perfectly inelastic supply or perfectly elastic demand, where the sellers assumes the entire burden of the tax to the perfectly elastic supply or perfectly inelastic demand where the buyers bear the entire burden. To better see how the elasticity of supply and demand affects tax incidence, consider a 20% tax on a can of soda. Suppose the government decides that the buyer should pay the 20% tax. Does this mean that the buyers will be paying 20% more, or will sellers have to share some of the tax burden? Since higher prices decrease demand, regardless of the reason for the higher prices, sellers will share some of the burden. How much of the burden will be determined by the elasticity of supply and demand for the product?