Using Supply and Demand Analysis, Graphically Show What an Excise

question 78

Essay

Using supply and demand analysis, graphically show what an excise tax does to equilibrium price and quantity. On your graph show the part of the tax paid by the consumer and the part paid by the producer.

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Definitions:

Two-Column Journal

A fundamental accounting record with two columns used for debits and credits to record financial transactions.

Debit

An accounting entry that increases an asset or expense account, or decreases a liability or equity account. It is positioned on the left side of an account ledger.

Credit

An accounting entry that increases the balance of liabilities and equity accounts or decreases the balance of an asset or expense account.

Horizontal Analysis

A financial analysis technique that evaluates the changes in the amounts of financial statement items over a period.