What kind of tax diagram can show the full consumer tax burden? If a government increases a purchase tax on an apartment, the tax will be fully burdened by the consumer, as the &quot;producer&quot; will simply be the owner of the house.
But in a diagram, should this be shown by a perfectly inelastic demand diagram where the consumer has full tax burden? However, how can we justify the demand for apartments being &quot;perfectly inelastic?&quot; Are there other types of diagram that could be used to show full consumer tax burden without an extreme demand/supply?
I would recommend that you read what Harvey S. Rosen and Ted Gayer have to say about taxation and tax burdens on their book, Public Finance.
Your hypotheses for perfectly inelastic demand might be flawed, to the extent that (1) the house market is competing with Airbnb-type companies and (2) -for inelastic supply- there is an affluence in housing available (that is, there are vacant houses -which is most always true in most first-world countries).