A per-unit tax on a good creates deadweight loss because

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A per-unit tax increases the cost of production for suppliers, which reduces the quantity of the good supplied and leads to a higher equilibrium price. This higher price reduces the quantity of the good demanded by consumers, resulting in a reduction in the overall quantity traded. Some buyers and sellers who would have traded at the market price prior to the tax will no longer do so because the tax raises the price they have to pay, making some mutually beneficial trades no longer viable. This reduction in trade leads to a deadweight loss, defined as the additional loss of consumer and producer surplus that arises from the tax, beyond the revenue collected by the government.

A Per-Unit Tax on a Good Creates Deadweight Loss Because