File talk:Social cost with tax.svg

According to this graph, i can understand that, after the raise in taxes, the market price is going remain the same... Am i getting it right? If it were the case, Is it really what would happen? wouldn't the producers transfer the tax amount to the consumers? (raising the price?) — Preceding unsigned comment added by Afa86 (talk • contribs)


 * This diagram seems to assume demand is perfectly inelastic, which is a special case. Is this ideal? Furthermost (talk) 22:38, 17 November 2011 (UTC)

Also, where the diagram reads "taxes", that should be tax per unit. I don't think it is clear as it is. Furthermost (talk) 22:38, 17 November 2011 (UTC)