When a tax is levied on a good:

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When a tax is levied on a good, it creates a difference between the price that buyers pay and the price that sellers receive. This difference is known as a wedge and it reduces the quantity of the good bought and sold in the market. The incidence of the tax (who bears the burden) depends on the elasticity of demand and supply, but it is likely to be shared between buyers and sellers. The market price may or may not fall, depending on the magnitude of the tax and the relative slopes of the demand and supply curves. However, the price that buyers pay is likely to be higher and the price that sellers receive is likely to be lower than they would be in the absence of the tax.

When a Tax Is Levied on a Good