After completing this worksheet, students will be able to:
1. Identify and calculate the following measures: tax wedge, after-tax quantity, new after-tax price buyers pay, new after-tax price sellers receive, the per-unit tax incidence on buyers, the per-unit tax incidence on sellers, the tax revenue collected as a result of an excise tax, and the resulting deadweight loss from a tax.
2. Identify what it is that determines who bears the greater burden of taxation (the relative elasticity of supply and demand).
3. Identify how the relative elasticity of a product affects the resulting tax efficiency (both the amount of revenue collected and the amount of deadweight loss caused by the tax).