<p>If a government increases a purchase tax on an apartment, the tax will be fully burdened by the consumer, as the &quot;producer&quot; will simply be the owner of the house.</p>
<p>But in a diagram, should this be shown by a perfectly inelastic demand diagram where the consumer has full tax burden? However, how can we justify the demand for apartments being &quot;perfectly inelastic?&quot; Are there other types of diagram that could be used to show full consumer tax burden without an extreme demand/supply?</p>

<microeconomics><taxation>
What kind of tax diagram can show the full consumer tax burden?
DWK
# What kind of tax diagram can show the full consumer tax burden?

(Asked by: username_0 on 2020-06-27)

If a government increases a purchase tax on an apartment, the tax will be fully burdened by the consumer, as the "producer" will simply be the owner of the house.

But in a diagram, should this be shown by a perfectly inelastic demand diagram where the consumer has full tax burden? However, how can we justify the demand for apartments being "perfectly inelastic?" Are there other types of diagram that could be used to show full consumer tax burden without an extreme demand/supply?

**Tags:** microeconomics, taxation

---

## 0 answers

