When a tax is imposed on a good, the tax burden is always entirely passed on to consumers, resulting in no change in producer prices.

When a tax is placed on a good, it does not always mean that consumers will bear the entire cost. The tax burden can be shared between producers and consumers, depending on how much each side can adjust their prices and quantities. For example, if a tax is added to the price of a loaf of bread, the baker might raise the price slightly to cover part of the tax, while consumers pay a bit more than before. This means that while consumers do pay more, the producer also feels the effect of the tax because they receive less money for each loaf sold after the tax is taken out. Therefore, the final price and who bears the burden can vary based on the market conditions and the elasticity of demand and supply.