The Five Methods Of The Definition Of Five Values

Submitted By xyj930420
Words: 1253
Pages: 6

1. Author: Geoff Riley data published: Sunday 23 September, 2012
2. Author: Manila data published: 2006
3. Author: Mike data published: 2009
4. Author: Rahul data published: 2008
5. Author: Matt data published: 2011
The reasons for me to choose these five articles are these articles are very specific and the author collect other materials to write for these articles. In the first article, it told me 4 values and the definition of the PED. Most of the material that I search was not specific than these. All of these materials include the PED and tax for the demerit good, for example the cigarettes. Price elasticity demand is the measurement for the price fluctuation, and these five factors (Availability of substitutes, the importance of this product, Consumption budget, the purpose of the goods, Sales income) are affecting the PED in the short/long run. The government set indirect taxation for demerit good (cigarettes) affects the market. The quantity of the goods bought/sold will be no change in the long run and the small change in short run because the demerit good is in elastic. And the price that buyers pay will be increase, because the indirect tax can be transferred for the customer. The deadweight loss from a tax is intimately connected to the supply and demand of the good being taxed. If either supply or demand is inelastic with respect to price, the deadweight loss will be low. But when designing a tax system, deadweight loss is not the only relevant consideration. The author who write this article are good for me to choose to write essay, because it give me more definition(deadweight loss, PED, indirect tax) and the example for my essay. Detail plan for economic essay
1: Background: There was a sharp decrease about 42%of population in US for adults who has cigarettes smoking. The government wants to solve this situation; therefore, they set up taxation for demerit goods such as cigarettes. (Manila, 2006)
2: Definition: The price elastic of demand is used to measure the quantity of demand change along with the changes in the prices of the goods. (Mike, 2009)
3: Thesis statement: This essay will discuss into five factors which could influence the price elastic of demand and explain the effectiveness of government imposing and indirect tax on a demerit good.

Main Body
Paragraph 1- Topic sentence: There are five decisive factors of PED
Main idea: Different time period for price elastic of demand have different forms. (Short run—inelastic, long run—elastic)
Supporting evidence: analysis of decisive factors of PED
1) Availability of substitutes: if a product has many substitutes, so the demand price elasticity for this product will increase. (Rahul, 2008)
2) The importance of this product: The importance of the product decides the fluctuation of PED. (Rahul, 2008)
3) Consumption budget: in real life, if the purchasing rates in budget of some products lower than other products. (Rahul, 2008)
4) The purpose of the goods: the more purpose of the goods caused the PED elastic (eg. Petroleum). Conversely, inelastic. (Rahul, 2008)
5) Sales income: sales income decides the PED increase or decrease. (Rahul, 2008)

Use the example contact to evidence: cigarettes
Paragraph 2: topic sentence: graphs show the effectiveness of government imposing an indirect tax on cigarettes.
Main idea: There are four effects for the government set an indirect tax on cigarettes.
Definition: The indirect tax is a type of tax that the taxpayer can be used to raise prices or improve charge standard methods to transfer to the others. (Howard, 2009)
Supporting evidence
Analysis the quantity of the good bought/sold: In short-run will decrease, and in the long run, it have no changes. Because in the short run, high price caused the buyers have to find the other substitutes and the sold of the cigarettes may change smaller, but in the long run, it will not change. (Geoff, 2013)
Analysis the price buyers pay: The