Suppose that the government decides to subject producers of this item to a unit excise tax equal to $2 per unit sold. What is the new market price? What is the new equilibrium quantity?

To determine the new market price and equilibrium quantity after the implementation of a unit excise tax, we need to consider the effects it has on both the demand and supply of the item.

1. Effects on Demand:
- The unit excise tax will increase the cost of production for producers, which can lead to higher prices for consumers.
- However, the impact on demand depends on the price elasticity of demand for the item. If the demand is relatively inelastic (insensitive to price changes), the change in price may have a smaller effect on demand. In contrast, if the demand is elastic (sensitive to price changes), the change in price may have a larger impact on demand.

2. Effects on Supply:
- The unit excise tax directly affects producers as they have to pay an additional $2 per unit sold to the government. This increases their costs and reduces their supply.
- As a result, the supply curve shifts upwards by the amount of the tax ($2) in the market.

To find the new market price and equilibrium quantity, we need to analyze the intersection of the shifted supply curve and the demand curve.

1. Start with the initial equilibrium price and quantity before the tax is implemented.
2. Apply the excise tax: Add $2 to the supply curve at each quantity to create a new supply curve.
3. Find the new equilibrium quantity: Locate the quantity where the new supply curve intersects the original demand curve. This quantity is the new equilibrium quantity.
4. Find the new market price: Correspondingly, find the price level on the demand curve at the new equilibrium quantity. This price is the new market price.

It's important to note that the specific demand and supply curves for the item are required to precisely determine the new market price and equilibrium quantity.

To determine the new market price and equilibrium quantity after imposing a unit excise tax of $2 per unit sold, we need to understand how taxes affect supply and demand.

1. Start with the initial equilibrium:
In the absence of the excise tax, the market price and the equilibrium quantity are determined by the intersection of the supply and demand curves.

2. Impose the excise tax on producers:
An excise tax is levied on producers, which increases their costs and causes a leftward shift in the supply curve. The magnitude of the shift is equal to the tax per unit.

3. New supply curve:
The new supply curve will be vertically shifted upward by the amount of the tax ($2 per unit). This means that at any given quantity, the price received by producers will be $2 less than before.

4. Determine the new market price:
The new market price is determined by the intersection of the new supply curve and the original demand curve.

5. New equilibrium quantity:
The new equilibrium quantity is the quantity at which the new supply curve and the original demand curve intersect.

To calculate the specific values for the new market price and equilibrium quantity, the original supply and demand curves are needed. Please provide information about the original supply and demand curves, such as equations or numerical values, so that we can proceed with the calculation.