Unit tax and ad valorem tax are examples of indirect taxes.

Illustrate and explain

these two examples of indirect tax burden under the conditions of perfect competition

A unit tax is a levy of fixed amount per unit of a good exchanged in a market. For
example, a unit tax is 20 rand per bread is levied on sellers of bread in a perfect
competition. In this case all firms will be levied the same unit tax. Therefore, if the tax
increases for bread the tax collectors will not collect any more revenue. When the
excise tax of 20 rand is imposed, buyers and sellers then base their decisions on
their differing views of the price of bread. Therefore, buyers will decide on how much
to buy by comparing the prices, with their marginal benefit. Sellers, however, decide
how much to sell by comparing their net price, with their marginal cost. In the
absence of any externality, the marginal cost and benefit reflect marginal social cost
and benefit. The tax prevents market interaction among buyers and sellers from
automatically equating marginal social cost and marginal social benefit, as is
required to attain efficiency.

Ad valorem tax