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$9.00 8.50 8.00 7.50 7.00 6.50 6.00 Gd 0005) 20 24 28 32 36 40 44 Os (000$) 44 40 36 32 28 24 20

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$9.00 8.50 8.00 7.50 7.00 6.50 6.00 Gd 0005) 20 24 28 32 36 40 44 Os (000$) 44 40 36 32 28 24 20 2. Suppose the government imposes a tax of $1.00 on each water bottle. Complete the column showing quantity supplied after the tax. (Hint: at a price of $8.00 the quantity supplied was 36000. With the tax, this quantity supplied will be supplied only at a price of $9.00, so the Quantity supplied with a tax at 9.00 is 36000) You continue, so at $8.50, the producer only gets 7.50, so is only willing to offer 32000 units. Quantity supplied after tax Qs(t) (0003) 36 32 28 24

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