Econ 1100 1st Edition Lecture 10Outline of Previous LectureTotal Revenue Test Total Revenue Test Examples Outline of Current LectureTypes of taxes A Per-unit Tax’s Effect Current LectureTypes of taxesLump Sum Tax Fixed tax • Does not change with the amount consumed or produced Value Added Tax (VAT) Tax on percentage of the value of the good consumed or produced Per-unit Tax Tax of $x on each unit of the good consumed or producedss Per-unit Tax on producer (supply) Increase in per-unit tax results in supply curve shifting to left These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.Firms will have and incentive to produce less Consumers will have to pay more for the product Per-unit tax is equal to the vertical distance between the supply curves Per-unit tax on the consumer (demand) Increase in per-unit tax results in shift in demand curve to the left Consumers will have to pay more Per-unit tax is vertical distance between demand curves Tax Incidence (burden of the per-unit tax) and elasticity Suppose supply is relatively elastic Suppose demand is relatively inelastic - Consumer’s face a greater burden of the