In the context of per-unit taxes, how does the distribution of the tax burden affect market equilibrium, and what justification supports the implementation of such taxes?

Per-unit taxes are fees imposed on each unit of a product sold, which can change how markets operate. When a tax is introduced, the cost of selling the product increases, leading to a shift in the supply curve to the left. This shift can raise the price for consumers and lower the quantity sold, affecting market equilibrium, which is the point where supply meets demand. The tax burden may be shared between producers and consumers, depending on how sensitive they are to price changes; for example, if a company sells a popular drink and raises its price slightly due to the tax, many customers might still buy it, meaning the company bears less of the tax burden. Implementing per-unit taxes can be justified as a way to reduce consumption of harmful products, like cigarettes, and generate revenue for public services.