The sizes of an export tax's impacts on production,consumption,exports and the government budget depend on what primarily?

Question

Quizplus · Accepted Answer

The sizes of an export tax's impacts on production, consumption, exports, and the government budget primarily depend on the elasticities of the local supply and demand schedules. The more elastic the local supply and demand, the greater the impacts of the tax. The autarky price and whether there is a world shortage or surplus for that crop can affect the initial equilibrium conditions, but the elasticities will determine the ultimate impacts of the tax. The world price may be relevant for determining the competitiveness of exports, but it is not directly related to the impacts of the export tax.

The Sizes of an Export Tax's Impacts on Production,consumption,exports and the Government