(Answered) 1. Unit taxes cause shifts in demand or supply curves, while ad valorem taxes cause pivots in those…

➤ How do these tax forms affect equilibrium price, quantity, and tax incidence?
Both taxes lower quantity and separate buyer and seller prices. The incidence depends on supply and demand elasticities: the less elastic side bears more of the burden. A unit tax creates a fixed per-unit wedge, while an ad valorem tax makes the wedge proportional to price, so incidence can change with price levels.