Simultaneous Effects of Supply and Demand Elasticity with Market Types on Tax Incidence (Graphical Analysis of Perfect Competition, Monopoly and Oligopoly Markets)

Engin Oner


The type and character of tax (level of tax rate, narrow or far-reaching scope of tax, being indirect or direct), difference of the market in which activities are being carried out (perfect competition market, monopolist competition, oligopoly, monopoly, etc.), cost conditions (fixed cost conditions, increasing cost conditions, decreasing cost conditions), supply and demand elasticity, conjuncture periods (crisis, welfare, war and interim periods) all affect the extent of incidence. In particular, degrees of elasticity greatly affect the incidence possibility in all market types. Similarly, depending on the elasticity when the demand elasticity is rigid and supply elasticity is high, the incidence becomes easy, but in the opposite situation however, tax incidence through price mechanism becomes harder.

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International Journal of Economics and Finance  ISSN  1916-971X (Print) ISSN  1916-9728 (Online)

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