Per Unit Tax

A per unit tax is a fixed tax on a product, independent of the product's price. It can be represented as a wedge between the supply and demand curves. P_B indicates the price buyers pay and P_S indicates the price sellers receive net of the tax. The orange rectangle represents the tax revenue (the per unit tax times the quantity sold). The consumer surplus is shaded in blue, the producer surplus in pink, and the deadweight loss in purple.