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hey how you can econ students this is mr. Clifford welcome to ac/dc econ right now were going to talk about taxes the government takes efficiency Brays deep in the harness now youve learned about supply and demand and consumer surplus and producer surplus its time to put all those things together and talk about taxes a per-unit tax or an excise tax is a tax on producer so right here lets have the supply and demand for some random product lets say milk Paul why are we doing milk no more milk so weve got the supply demand for milk and lets say the equilibrium is right here at $3 if the government put a per unit excise tax on milk of two dollars per unit that would cause a supply curve to shift to the left that would cost supply to shift to the left theres some more details a check set to watch out for as you can see the price that consumers pay is now four dollars but I want you to notice the price didnt go up to five right it was a $2.00 tax and the price before was three the
