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The question presents a scenario in which the Canadian government imposes a $20 excise tax per tire on automobile tire producers. Previously, no such tax existed. This tax affects the supply curve, shifting it upwards by the tax amount.

Let's break down the question:

1. **Impact on Supply Curve**: An excise tax on producers increases production costs. To reflect this on the supply and demand graph, the entire supply curve shifts vertically upwards by the amount of the tax ($20 in this case).

2. **Consumer Price After Tax**: From the provided image, it appears that the price paid by consumers after the tax is $100.

3. **Producer Price After Tax**: Since the tax is $20, producers receive the consumer price minus the tax. 
   
   \[
   \text{Price received by producers} = \text{Consumer price} - \text{Tax}
   \]
   
   Plugging in the values:
   
   \[
   \text{Price received by producers} = 100 - 20 = 80
   \]

Thus, the answer for the price received by producers, net of tax, is **$80**.

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Would you like more details on the economic principles involved or have any questions?

### Related Questions

1. How does an excise tax generally affect consumer surplus and producer surplus?
2. What would happen if the excise tax was imposed on consumers instead of producers?
3. How would the equilibrium quantity of tires change after the tax?
4. How does the elasticity of demand affect the distribution of tax burden between consumers and producers?
5. What might be the long-term impact on the tire market if the tax persists?

**Tip:** Remember, in economic models involving taxes, the side of the market that is more inelastic (either consumers or producers) usually bears a larger portion of the tax burden.

Suppose the Canadian government places an excise tax of $20 per tire on producers of automobile tires. Previously, there was no excise tax on automobile tires. As a result of the tax, tire producers, such as Bridgestone and Michelin, alter their tire prices. The graph shows the demand and supply curves for automobile tires before the excise tax. Shift the appropriate curve or curves to demonstrate the impact of the new tax. What price do consumers pay for tires after imposition of the tax? What price do producers receive for tires net of taxes?

Analyze the impact of a $20 excise tax on tire prices with this supply and demand problem. Learn how to calculate the price paid by consumers and the net price received by producers. This problem includes supply and demand curve analysis and tax-related price shifts, suitable for Grades 11-12.

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