Draw the demand and supply curves and label them D1 and S1. Mark the equilibrium price and quantity on the graph. Assume the government imposes a sales tax of K2.00 per unit supplied. Draw the new supply curve after tax and label it S2. Mark this on your graph. What is the new equilibrium price?

• Plot the Quantity Demanded points against Price (e.g., (900, K2), (800, K3), etc.) and connect them to form the demand curve D1.
• Plot the Quantity Supplied (Prior to tax) points against Price (e.g., (0, K2), (200, K3), etc.) and connect them to form the supply curve S1.

• The initial equilibrium occurs where D1 intersects S1. From the table, at a price of K5, the quantity demanded is 600 units, and the quantity supplied (S1) is also 600 units.
• Mark the point (600 units, K5) on your graph as the initial equilibrium.

• For each price P, the quantity supplied on S2 is the quantity supplied on S1 at price $(P - K2)$. The new supply schedule (S2) is:

  Price (K)	Quantity Supplied (S2, after K2 tax)
  2	0 (Qs1 at P=0)
  3	0 (Qs1 at P=1)
  4	0 (Qs1 at P=2)
  5	200 (Qs1 at P=3)
  6	400 (Qs1 at P=4)
  7	600 (Qs1 at P=5)
  8	800 (Qs1 at P=6)

• Plot these new points (e.g., (0, K4), (200, K5), etc.) and connect them to form the new supply curve, labeling it S2.

• We need to find the price where Quantity Demanded ($Q_D$) equals Quantity Supplied after tax ($Q_{S2}$). From the tables:

  Price (K)	Quantity Demanded (D1)	Quantity Supplied (S2)
  6	500	400
  7	400	600
  The equilibrium price is between K6 and K7.

• To find the exact price, we derive the linear equations for D1 and S2. Demand curve (D1): Using points (K6, 500) and (K7, 400). Slope $m_D = \frac{400 - 500}{7 - 6} = -100$. Equation: $Q_D - 500 = -100(P - 6) \implies Q_D = -100P + 1100$.

  Supply curve (S2): Using points (K6, 400) and (K7, 600).
  Slope $m_S = \frac{600 - 400}{7 - 6} = 200$.
  Equation: $Q_{S2} - 400 = 200(P - 6) \implies Q_{S2} = 200P - 800$.

• Set $Q_D = Q_{S2}$ to find the new equilibrium price:

  $$1100 - 100P = 200P - 800$$ $$1100 + 800 = 200P + 100P$$ $$1900 = 300P$$ $$P = \frac{1900}{300} = \frac{19}{3}$$ $$P \approx 6.33$$

The new equilibrium price is $\boxed{\text{K}\frac{19}{3} \text{ or approximately K6.33}}$.