indirect taxes and subsidies

Question 1

What is indirect tax

Answer 1

is a tax on a good or a service

Question 2

what is direct tax

Answer 2

is a tax on an individual or an organisation.

Question 3

what is incidence or burden tax

Answer 3

is the amount that the consumer (or producer) will pay for the tax

Question 4

whats a subsidy

Answer 4

A subsidy is a financial incentive to produce or consume a given product

Question 5

if demand is price inelastic, will the incidence tax be greater for consumer or producer

Answer 5

If demand is price inelastic the incidence of the tax will be greater for the consumer.

Question 6

if demand is price elastic, will the incidence tax be greater for consumer or producer

Answer 6

If demand is price elastic the incidence of the tax will be greater for the producer.