Suppose that your neighbor is willing to pay you

$100 to do some home repairs for her. You would be willing to do the job for $80, so you strike a deal. Now suppose that the government levies a tax of $25 on all home repair transactions.

You pack up your gear and leave your neighbor’s home, because it is no longer worthwhile for you to do the job. As a result of your leaving the job, you do not have to pay the $25 tax. Relate this scenario to the concept of excess burden.