Taxes on Consumers

Enact a tax on consumers and see its effect.
You may drag light gray points to alter the model.

www.scottfarrar.com 

@farrarscott

Demand

Supply

Demand (with Taxes)

%y

%y

%x

%x

%y

P

Q

Enact Taxes

Tax: $%v

Taxes

H = Point(yAxis)
L = Point(xAxis)
a = OrthogonalLine(L, xAxis)
M = Point(a)
J = Point(yAxis)
I = Point(yAxis)
f(x) = y(H) - x
h: y = y(J) + ((y(M) - y(J)) / (x(M) - x(J)) * x)
g(x) = y(I) - x
A = Intersect(g, h, 1)
B = Intersect(f, h, 1)
i = OrthogonalLine(A, xAxis)
j = OrthogonalLine(B, xAxis)
k = OrthogonalLine(A, yAxis)
l = OrthogonalLine(B, yAxis)
C = Intersect(f, i, 1)
D = Intersect(l, yAxis)
E = Intersect(k, yAxis)
F = Intersect(i, xAxis)
G = Intersect(j, xAxis)
m = Segment(G, B)
n = Segment(B, D)
p = Segment(F, A)
q = Segment(A, E)
r = Segment(A, C)
s = OrthogonalLine(C, yAxis)
K = Intersect(s, yAxis)
t = Segment(C, K)
b = false
c: y(H) - y(I)
d = Segment(H, I)
text1: "Tax: $" + c + ""
eqP: y(D)
PtoP: y(E)
PtoC: y(K)
text4: "Consumer pays $" + eqP + ", Producer gets $" + eqP + ""
text5: "Consumer pays $" + PtoC + ", Producer gets $" + PtoP + ""