The demand and supply of coffee are shown here, with an equilibrium price of $4 per pound and an equilibrium quantity of 4,000 pounds per week. Suppose the government imposes a $3 tax per pound of coffee, collected FROM THE BUYER.   Draw a new curve (demand or supply), accurately positioned, that reflects the impact of this tax.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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The demand and supply of coffee are shown here, with an equilibrium price of $4 per pound and an equilibrium quantity of 4,000 pounds per week. Suppose the government imposes a $3 tax per pound of coffee, collected FROM THE BUYER.

 
Draw a new curve (demand or supply), accurately positioned, that reflects the impact of this tax.
 
Please draw the new curve. THANK YOU .
Price, S/pound
10
0
2
Quantity of coffee per week, in thousands of pounds
Transcribed Image Text:Price, S/pound 10 0 2 Quantity of coffee per week, in thousands of pounds
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