Y1 29) Indirect Tax and Market Failure

Y1 29) Indirect Tax and Market Failure. Everything you need for Indirect Taxation to solve Market Failure
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[@eliopalombi]

This channel is a merit good!

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Thank you Jesus for rating this channel

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@@EternalShadow1667 you’re absolutely welcome

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[@eliopalombi]

@@harrisonlucas1381 This channel is a merit good!

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[@sonnyjohnson3561]

genuinely you make these explanations so much better than the edeexel textbook

[@eliopalombi]

Best econ channel on RUclips, no questions asked.

[@benjaminsibson8760]

Thanks Jesus

[@Ahmed_ammu]

What did u get in ur a level

[@isabellawilliams583]

Great video! Love the final argument about it being paternalistic - have't read that anywhere before!!

[@tzutzu6455]

Thank you Econsplusdal!!

[@austinwachira5185]

Thanks, Dal. Some really key points in there. 🙌🏽🔥💯

[@ric6383]

Many thanks. Your last comments were the most important, even though negligible exam marks can be derived from it. It's no wonder this subject was originally called 'Political Economy'.

[@56dragonfly]

thank you for the video! will there also be triangles of welfare gain to society which can be shaded in on these diagrams?

[@jra8042]

A day before my As very helpful playlist

[@NUTTY-nw4ed]

I've got mine on Monday, How'd yours go?

[@jra8042]

It was good the multiple choices are tricky but the case studies are good

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@@jra8042 so what did u get

[@samueljwilson418]

Great video, so helpful to see the full explanation

[@NguyenLong-ii4pi]

sir thank you very much

[@chrysalisjong7416]

THANK YOU!!!!!!!

[@NUTTY-nw4ed]

The sugar tax is a Tax on Negative Externalities in Consumption right?

[@anaulloa3282]

Thanks!

[@angellatitus2236]

Thanks so much

[@saweera123]

do you have any model essay answers to share

[@Hammoud_420]

paper 1 is tomorrow and i just learned how indirect taxes work, no need for the textbook im getting an A

[@nooriftikhar632]

Heyy! Got an A?

[@boluwatifeabimbola122]

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[@nawwarsafi7005]

EPIC!!!!

[@FHDOnTheStreet]

Just Amazing x

[@danroberts4333]

Hi, how-comes the indirect tax placed on a negative consumption externality shifts the 'costs' curve down? Surely with externalities such as smoking and other habitually addictive goods that are inelastic, that the price is fully passed onto the consumer? Why does this affect a firms costs of production?
Thanks

[@joeandrew2k403]

dan roberts the tax is given to the forms so their costs increase hence the shifting supply/MSc cost causing the quantity to drop and price increase. However your evaluation of this solution is like you said if the good is inelastic in demand which tends to be the case for demerit goods, the quantity won't fall as great instead just increasing the price which can be said to be government failure. He explains this later on

[@joepaz4785]

it does get passed on to the consumers if you were to do a supply and demand diagram you would see that supply shifts to the left and increases costs. less would be demanded by consumers due to the increased price and you would get a movement along the demand curve.

[@adzzz325]

Myyy guyyy

[@user-gu2cb2wf8f]

Why does MPC shift in? With indirect tax it should increase the cost so MPC surely should shift out

[@Alex-tn6tt]

The tax causes a shift inwards of supply as it now costs firms more to produce at that level which then provides a disincentive to produce that demerit good.

[@duncdunc5463]

i notice how you have cost/price/benefits on the y axis, do we lay it out like this in the real exam or do we just choose one of the 3

[@joshaustin3730]

Put all 3

[@vzeiix-5442]

Bros name is josh

[@master4755]

Could you use the laffer curve in your evaluation here?

[@phads5542]

not really as indirect taxes are taxes on goods and producing them, such as vat. these are usually added onto the price of goods so it would be very hard to avoid them.

[@master4755]

@@phads5542 tru

[@stephencastillo]

how does indirect cost promote allocativeefficiency?

[@misrishah7354]

taxes, it corrects the negative externalities and thus demerit goods are themselves under produced

[@aaryamankhanna5951]

GOD

[@madiholmes7585]

I should have just not gone to economics class for the past 2 years and watched your videos instead

[@upthedons_]

i love u

[@maslam6400]

How is allocative efficiency promoted?

[@aaditdoshi8694]

by taxation, negative externality is corrected and hence the commodity will no longer be overproduced

[@cathychen6379]

wish me luck!! aim for Astar

[@nooriftikhar632]

Heyy. Did you get an A* ?

[@NotAleenaAlt2]

please make a video on Keynesian cross pleaseeeeee

[@kinsabony3238]

Could you do some WJEC based economics guides?

[@luisgoncalves4711]

2023 and u still saving lifes

[@nooriftikhar632]

Got your exams done?

[@xaviergraham8343]

hypothecated loooool