Initial demand function

Qd = a – bP

Initial supply function

Qs = a +bP

When government imposes tax on buyers then initial demand equation

changes to

Qd = a –b(P +t)

When government imposes tax on sellers then initial supply equation

changes to

Qs = a +b(P-t)

If government imposes tax on percentage basis then

a. Tax on buyers: per unit 10%

Qd = a – bP( 1+ 1 of 10%)
b. Tax on sellers : per unit 10%
Qs = a + bP∕(1 +1 of 10%)