The supply curve for rice is as follows:
Price (per 100 lb. bag) | Quantity |
---|---|
$40 | 10,000 |
$60 | 15,000 |
$80 | 20,000 |
Under pressure from nutrition activists, the government decides to tax rice producers with a $5 tax per 100-pound bag. Using the preceding figure, draw the new supply curve.
Price (per 100 lb. bag) | Quantity |
---|---|
10,000 | |
15,000 | |
20,000 |