Tax Incidence GRAPH ($) Price 90 $90.00 80 70 60 50 $50.00 40 30 20 10 Surplus Measures Off SETTINGS S Tax imposed on: Supply Demand Excise Tax (0 $20) Demand Perfectly Inelastic Supply 0.00 Reset Relatively Elastic Relatively Elastic Less Elastic Perfectly Elastic Perfectly Elastic D CALCULATIONS 0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 Quantity (thousands per week) Price Paid Quantity No Tax $50.00 4,000 With Tax $50.00 4,000