Per-Unit Tax Equilibrium Calculator

Problem → model → reason → result

What problem does this model solve?

Solve post-tax consumer price, producer price, quantity, tax revenue and deadweight loss for linear supply and demand.

Why does the model apply?

The statutory side that sends the tax payment does not determine economic incidence. The new equilibrium and burden depend on the relative slopes of supply and demand.

What assumptions does it make?

The variables must describe the same market, firm, period or decision context and use consistent units. Any behavioural condition implied by the formula—such as other factors remaining unchanged—must be reasonable for the question being asked.

Formula

Pc − Pp = tax; a − bPc = c + dPp

Calculation and working

The calculator substitutes your inputs locally and displays the numerical result. Change one input at a time to test which relationship drives the result.

What does the result mean?

Interpret the result in the economic context named above, including its sign, magnitude, units and time period. A calculated relationship is not by itself evidence that one variable caused another.

Worked example

For Qd = 1,000 − 20P, Qs = 100 + 10P and a $9 tax, consumers pay $33, producers receive $24 and quantity falls to 340.

When does this model not apply?

Do not use the result when the input definitions, units or formula assumptions do not match the real situation. This is an educational model, not financial, investment, tax or policy advice; verify material decisions against primary data and professional guidance.