Final answer:
The imposition of a $2 tax on the supplier will lead to a shift in the supply curve, resulting in a new equilibrium with an increased price necessary for maintaining profitability and a corresponding decrease in the quantity supplied.
Step-by-step explanation:
The student's question concerns the new equilibrium point after a tax of $2 is imposed on the supplier. According to the equilibrium price dynamics in economics, when a tax is placed on the supplier, it effectively increases the cost of producing the good, which in turn shifts the supply curve upward or to the left, representing a decrease in supply.
In the given scenario where a firm previously at equilibrium will now have to pay an additional cost per unit, this tax will increase the price from its original equilibrium price necessary for the firm to maintain profitability, which is illustrated as $700 per refrigerator in our example. As a consequence of the increased price, the quantity of goods supplied at this new price will be lower than at the original equilibrium, indicating a decrease in the quantity of goods produced. Moreover, the equilibrium quantity demanded will change as a response to the new market prices.
Specifically, in the case provided in the original question with salmon, the imposition of a tax led to a surprising outcome where the equilibrium quantity increased when the new equilibrium E1 was reached, even though the demand curve did not move. It is essential to carefully analyze the interactions of supply, demand, and imposed taxes to understand the complete impact on the new equilibrium point.