Read the sections on Demand, Supply, Market Equilibrium, and Government Intervention and Disequilibrium for a mathematical exposition of the demand and supply model, clicking through to the next when you have finished each page. The chapter also covers price ceilings and price floor analysis as well as quantity regulations.
Taxation Impact on Economic Output
If the government increases
the tax on a good, that shifts the supply curve to the left, the
consumer price increases, and sellers' price decreases. A tax increase
does not affect the demand curve, nor does it make supply or demand more
or less elastic.
This potential increase in tax could be called marginal, because
it is a tax in addition to existing levies.