In a market where a tax is imposed on a good, how does this tax impact producer surplus, tax incidence, and overall economic surplus as depicted in a graph?

When a tax is placed on a good in the market, it raises the price that consumers pay while lowering the price that producers receive. This change decreases producer surplus because producers earn less for each unit sold after the tax is deducted. The tax also creates a situation called tax incidence, which refers to how the burden of the tax is shared between consumers and producers; often, both parties feel the impact. Overall economic surplus, which is the total benefit to society from the market, decreases because the tax creates a deadweight loss, representing the lost trades that would have occurred without the tax. For example, if a tax makes a product too expensive for some buyers, those buyers may decide not to purchase it, leading to fewer transactions and a loss in economic efficiency.