A government imposes a tax on a product, resulting in a higher price for consumers and a lower price received by producers. Which of the following outcomes best illustrates the concept of deadweight loss and tax burden sharing between consumers and producers?

When a government imposes a tax on a product, it changes how much consumers pay and how much producers receive. For example, if a tax increases the price of a loaf of bread from $2 to $2. 50 for consumers, but the producer only gets $1. 80 after the tax, this creates a gap. Some consumers will decide not to buy the bread because it costs too much, and some producers might decide not to make as much bread because they earn less.