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ECON NOTES: ELASTICITYChelsea KatzWeek of Feb 11th, 2013- Expenditure= price (x) quantity - If expenditure decreases, so price goes up, and quantity goes down.- If expenditure increases, price goes up, and quantity goes down. - Impact of a price increase on expenditure: a. inelastic: risesb. elastic: fallsc. unit elastic: constantStatutory and Economic Incidence: - Statutory Incidence of a tax: the economic agent who is legally responsible for payment of a tax.- Economic Incidence of a tax: The final distribution of the burden of a tax- Tax shifting: The difference between the statutory incidence of a tax and the economic incidence of a
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