Suppose in the long run, the government imposed a tax on the supply of a commodity. How does it affect the equilibrium quantity of commodity?

The quantity of commodity will decrease.

The correct answer is Option (1) → The quantity of commodity will decrease.

• When the government imposes a tax on the supply of a commodity (such as an excise duty or production tax), it increases the cost of production for sellers.

• As a result, producers reduce the quantity supplied at each price level.

• In the long run, the supply curve shifts leftward (upward), leading to a higher equilibrium price and a lower equilibrium quantity.

Thus, the equilibrium quantity of the commodity decreases in response to the tax.