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Excess Burden: Unit Tax on Sellers in the Market Price per No Tax Price per With a $2 Unit Tax litre (P) litre (P) Qs

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Excess Burden: Unit Tax on Sellers in the Market Price per No Tax Price per With a $2 Unit Tax litre (P) litre (P) Qs = 0.8P S2 Qa=-0.2P + 16 S1 S1 $2 B C P, = Consumer burden = P1 = $16 A P1 = $16 A P2 = $2 Supplier burden = D D Quantity in billions Q1 = 12.8 Q= Of litres (Q)

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