If a producer has to pay a Tax of ₹'c' per unit then the new demand function is QD = - Economics - Market Equilibrium

Question

If a producer has to pay a Tax of ₹'c' per unit then the new
demand function is
QD = a + b(P-c)
However if the tax is flat i e ₹'d' irrespective of the units
produced (independent of production quantity) then how to show this
change in the Demand Function?????

Vaishali Nebhwani · Accepted Answer

Dear student,

the rate of tax is not visible
However, Tax is levied at a certain % over the total production not
on specific unit Tax increases cost, which increases price and in
turn decreases quantity demanded,

Regards

If a producer has to pay a Tax of ₹'c' per unit then the new demand function is QD = a + b(P-c) However if the tax is flat i.e ₹'d' irrespective of the units produced (independent of production quantity) then how to show this change in the Demand Function?????

If a producer has to pay a Tax of ₹'c' per unit then the new demand function is
QD = a + b(P-c)
However if the tax is flat i.e ₹'d' irrespective of the units produced (independent of production quantity) then how to show this change in the Demand Function?????