Calculate the shift in the supply curve caused by an ad valorem tax.
Author: shiroeExecutions: 16
※ This library was created by a member. This site is not responsible for its content.
Enter the supply function before taxation.
Enter a non-positive value for f. (A negative value of 0 or less)
Enter a positive number for `c`. (A positive number other than 0)
Enter a non-negative number for `t`. (A positive number greater than or equal to 0)
`t` is the ad valorem tax rate; for example, enter 0.03 for 3 percent,
or 0.1 for 10 percent.
Output the coefficient of P in the supply function after the ad valorem tax is applied.
Output the y-intercept of the supply curve before taxation.
Output the y-intercept of the supply curve after taxation.
Enter a non-positive value for f. (A negative value of 0 or less)
Enter a positive number for `c`. (A positive number other than 0)
Enter a non-negative number for `t`. (A positive number greater than or equal to 0)
`t` is the ad valorem tax rate; for example, enter 0.03 for 3 percent,
or 0.1 for 10 percent.
Output the coefficient of P in the supply function after the ad valorem tax is applied.
Output the y-intercept of the supply curve before taxation.
Output the y-intercept of the supply curve after taxation.
| Coefficient of P after taxation | |
| Pre-tax price y-intercept | |
| Post-Tax Price-Axis Intercept | P-axis intercept after shift |
R6 (2024). September 1 (Sun)_Ver. 001
Digit setting: 50 digits. Can be changed. Real number calculation mode.
Digit setting: 50 digits. Can be changed. Real number calculation mode.
No customer feedback for this calculation yet.
This is a topic in microeconomics.
Assume that the tax is imposed on producers (suppliers), who pass it on to the demand side (consumers).
In this case, the supply curve shifts due to the ad valorem tax.
When the supply curve shifts due to an ad valorem tax, we determine the coefficients of the supply function and
the change in the y-intercept.
Let the supply function be S = f + cP. This is a linear equation.
S represents quantity. P represents price. f is the constant term. c is the coefficient of P.
Since the shift caused by an ad valorem tax—unlike that of a specific tax—is not a parallel shift,
we determine the change in the coefficient related to the slope and the change in the y-intercept.
Please be careful not to confuse this with a specific tax.