the demand curve shifts down by the amount of the
tax (50 cents) to D2. The downward shift in the demand curve (when the tax is imposed on
consumers) is exactly the same magnitude as the upward shift in the supply curve when the tax
is imposed on producers. So again, the equilibrium quantity is Q2, the price paid by consumers is
P2 (including the tax paid to the government), and the price received by producers is P2 – 50
cents.