Final answer:
A $1.50 tax per unit levied on sellers causes the supply curve to shift to the left, indicating a decrease in supply, and typically results in an increased equilibrium price due to higher production costs for sellers.
Step-by-step explanation:
When a $1.50 per unit tax is levied on sellers, the supply curve will shift to the left. This shift represents an increase in production costs for sellers, as they now have to pay an additional $1.50 in tax for every unit they sell. Consequently, at every price level, the quantity of goods that sellers are willing to supply decreases. This is because the tax effectively reduces the net price received by sellers for each unit sold. As a supply curve shift to the left signifies a decrease in supply, the after-tax supply curve is represented by this leftward shift. This leftward shift of the supply curve will result in an increase in the equilibrium price as the supply contracts.
Considering scenarios where firms or companies are taxed or fined, such as being required to pay for emissions or clean-up efforts, similarly, the supply curve shifts to the left. For instance, firms facing fines for carbon dioxide emissions or pollution cleanup will see their production costs increase, leading to a reduced supply at each price point. Therefore, for each case in Exercise 12.2, where additional costs are imposed on producers, the equilibrium price will likely rise as the supply curve shifts left and decreases the quantity available at any given price.