Note: the example and the diagrams used in this example where extracted from Economics for the IB Diploma by Ellie Tragakes (Published by Cambridge). Learning outcomes Indirect taxes Why does the government impose indirect(excise) taxes Specific vs ad valorem taxes Diagrams for specific and ad valorem taxes and analyse the impact on market Consequences of imposing excise taxes on government, consumer and producer Explain, using diagrams, how the incidence of indirect taxes on consumers and firms differs, depending on the price elasticity of demand and on the price elasticity of supply. (HL) Plot demand and supply curves for a product from linear functions and then illustrate and/or calculate the effects of the imposition of a specific tax on the market (on price, quantity, consumer expenditure, producer revenue, government revenue, consumer surplus and producer surplus). (HL) Indirect tax These are taxes imposed on the producer for producing a goo...