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?????

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,


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Aise question laate kaha se ho sir?
Can you please tell me the source :p
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What are you looking for?