An indirect tax that is a percentage of the price of a product, causing the supply curve to shift to the left and become steeper than the original supply curve
What are specific taxes?
An indirect tax that is a fixed amount of tax on each unit consumed, causing the supply curve to shift to the left
What are subsidies?
Grants from the government, reducing the costs of production
What is the incidence of tax?
How a tax is shared between different groups, such as between producers and consumers
