How do consumers and producers both pay part of an excise tax, and how does the tax shift prices and quantity? This economics teacher demonstrates how to use a graph in order to answer these questions, as well as how to calculate tax per unit, total tax revenue, spending by consumers, and net revenue.

Additional Tags

dead weight loss, tax revenue, social studies

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Classroom Considerations

• Instructor moves quickly through material, so pause during whole-class instruction or assign as a flipped classroom resource so learners can move through video at their own pace
• Queue up the video prior to class to skip third-party advertisements

• This video is hosted on YouTube

Pros

• Also incorporates review of the concept of dead weight loss

Cons

• None

Common Core

RH.11-12.2