Figure 4-9 Price per pack $12 Tax Demand Quantity of cigarettes (1000s of packs) e 4-9 shows the market for cigarettes. The government plans to impose a unit tax in this market. 40 Supply 70

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter5: Elasticity
Section: Chapter Questions
Problem 20RQ: Under which circumstances does line tax burden fall entirely on consumers?
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Typed plz and asap thanks

$8
$5
$4
$3
Figure 4-9
Price
per pack
$12
0
5
3
8
Demand
Quantity of cigarettes
(1000s of packs)
Figure 4-9 shows the market for cigarettes. The government plans to impose a unit tax in this market.
Tax
Refer to Figure 4-9. How much of the tax is paid by buyers?
40
Supply
70
Transcribed Image Text:$8 $5 $4 $3 Figure 4-9 Price per pack $12 0 5 3 8 Demand Quantity of cigarettes (1000s of packs) Figure 4-9 shows the market for cigarettes. The government plans to impose a unit tax in this market. Tax Refer to Figure 4-9. How much of the tax is paid by buyers? 40 Supply 70
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