Answer
The situation described in the question can only happen if tax levied on the producers is taken back. This is because when the tax is levied on the producer it raises their cost of production and if it is taken back it will reduce their cost of production and thus prompt them to increase the quantity supplied at every price or supply curve will shift to the right.
Work Step by Step
As tax is related to the seller, its levying or repel will have no impact on position of demand curve.
So, with position of demand curve remaining unchanged, this rightward shift of supply curve will lead to fall in equilibrium price.
This fall in equilibrium price means consumers will pay less.
As price and quantity demanded has inverse relationship, this fall in price means increase in quantity demanded.
