Price of gym membership, Number of gym members, P0, P1, Q0, Q1, D, S0, S1, A tax is an extra cost to firms supplying gym membership., The rise in the cost of production will cause a decrease in supply from S0 to S1., The reduction in supply causes price to rise from P0 to P1., The higher price, in turn, causes demand to contact from Q0 to Q1.

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