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The government is proposing a $2.00 tax levied on the sellers of birdhouses, which will shift the supply curve to the left. As a result, fewer people would be willing to sell their birdhouses for $10.00 each, and it would require more sellers who are willing to do so at that price. The buyers of these products will see an increase in price as well – from $8.00 each before this levy to now about $12-13 depending on how many suppliers there are at any given time (assuming no other changes). president our by passed if business your impact would effects its how consider also but levy this oppose only not you urgeI . buyers for more even prices raising or debt into going without task impossible an’s That! before had they what than higher times three up go to needs inventory means which – sold item per15-$14 $ about of revenues need’ll they, point price13-12 $ a with profitable be to suppliers for order in that is problem The. sales report to incentive some have least at sellers since well as evasion tax discourage potentially and them buy who people from collected revenue their increase can whichhouses bird purchase to expensive more it make will It. government the of part the on idea good a like seems this, glance firstAt by proposed been has law newA houses Bird ofers Sell onied Lev Tax00.0 $ a of ImpactThe ). changes other noassuming ( time given any at are there suppliers many how on depending25-20 $ about now to) changes other noassuming ( levy this before13-12 $ about from – well as price in increase an see will products these of buyers The. price that at so do to willing are who sellers more require would it and, each00.14 $ forhouses bird their sell to willing be would people fewer, result a As. left the to curve supply the shift will which,houses bird of sellers the on levied tax00.0 $ a proposing is government The:Example ). changes other noassuming ( time given any at are there suppliers many how on depending15-14 $ about now to levy this before11 $ about from – well as price in increase an see will products these of buyers The. price that at so do to willing are who sellers more require would it and, each13-12 $ forhouses bird their sell to willing be would people fewer, result a As. left the to curve supply the shift will which,houses bird of sellers the on levied tax02.0 $ a proposing is governmentThe
