Market for wooden pencils: suppose there is now a law that lowers the amount of trees that can be cut, and taxes companies for cutting more trees than the quota set by the government. Using demand and supply analysis, determine what would happen to the equilibrium price and quantity of wooden pencils. You do not need to draw the graph, just discuss which of the curves will shift, the direction of the shift (left or right), and the final effect on the equilibrium price and quantity