On September 14th, 2023, the Canadian government threatened major grocers (Loblaws, Costco, Walmart, etc.) with new taxes if they failed to lower their food prices.

Assume that the government imposes such taxes. Using a supply and demand diagram, show what effect this has on the equilibrium in the market for food. Does this help to lower food prices? If you were in charge of the government, how would you reduce food prices for Canadian consumers?