Product details

This case flyer introduces the participants/students to three types of Elasticity - Price, Income and Cross Elasticity - along with Incidence of taxation. The base article from The Economic Times estimates how the newly imposed service tax of 14% would impact three different types of services - Luxuries, Basic Services and Financial Services. This case flyer lets the participants to understand how different types of services behave differently to changes in prices, income and the prices of related goods (complements and substitutes). When a service tax is imposed the burden has to be borne either by the consumer (by way of increased prices) or the producer (by way of reduced margins) and this case flyer can be used to understand the accompanying incidence of taxation when a service tax is levied.