What will the new production level be if a tax of $0.40 per gallon is imposed on gasoline? The figure depicts price of gas in dollars per gallon on the vertical axis, and quantity in millions of gallons on the horizontal axis. There are two upward-sloping lines, representing the old supply and new supply. The new line lies above the old supply line. There is a downward-sloping line that intersects both of the others, labeled demand. There is also an indication of a $0.40 tax with an arrow going from the old supply to the new supply. The old supply and demand intersect at (1,400, 2.6), while the demand and the new supply intersect at (1,000, 3). There are also two other points labeled on the old supply curve: one at (1,000, 2.4) and the other at (2,000, 3.0). An additional point is labeled on the new supply curve at (300, 2.6). 2,000 1,400 300 1,000