Indifference Curve (With Diagrams)
Indifference Curve Applications of Taxes and Subsidies! Indifference Curve Applications: Income Tax vs. Excise Tax: Indifference curve analysis may be applied to compare the effects of two different taxes, viz., an income tax and an excise tax. We shall see that the typical consumer is better off with an income tax than with a comparable excise tax on a single [...]