Answer
a. a $1 per unit tax levied on producers of the good
Work Step by Step
Taxes create a wedge between the buyers' paying price and the sellers' receiving price. This tax wedge is the same irrespective of whether the tax is levied on the buyers or sellers. In both cases, the burden of tax is borne by both producers and consumers. It is only a matter of who sends the money to the government that changes in these cases.
