In the traditional supply-demand diagram, there is a tacit assumption that the seller receives what the buyer pays. However, the imposition of the tax means that the buyer will pay more than what the seller receives — the difference goes to the government. Therefore, the demand and supply ...
diagram analysis of dynamic adjustment process. It demonstrates that the occurrence of yield curve inversion is an off-equilibrium phenomenon after an adverse shock in the adjustment process of interest rates and output, and that an inverted yield curve may lead, but does not lead to, a ...