Both are associated with the principles of supply and demand. Table of contents: What is Cost-Push Inflation? Examples of Cost-Push Inflation What is Demand-Pull Inflation? Examples of Demand-Pull ...

» MORE: What is excise tax? Factors influencing tax incidence We’ve seen how the elasticity of demand and supply is one of the main determinants of tax incidence.

Perfect price elasticity is when demand moves infinitely given a price change, with an example being two producers of a commodity selling them side by side.