Suppose the U.S. supply and demand curves for wheat cross at a price of $5 per bushel, but American producers can sell as much wheat as they want to on the world market at a price of $8 per bushel. Now suppose the government imposes a sales tax of $1 per bushel on all wheat sold by American producers to American consumers. Suppose also that American consumers are forbidden to buy wheat from foreigners, so all wheat sold in America must be produced in America.

9. What price must Americans pay for wheat before the tax is imposed?

10. What price must Americans pay for wheat after the tax is imposed?