Problem 2 The government raises taxes on cigarettes from $1 per to $2 per pack. Prior to the tax increase, 5 million packs were sold each year. The new equilibrium quantity is 4 million packs a. Calculate the total revenue before and after the tax increase. Before the increase, tax revenue was $ million. After the increase, tax revenue was $ million. Question 3 b. Revenue ( Select ] which tells us that the [ Select ] V dominated.

Problem 2 The government raises taxes on cigarettes from $1 per to $2 per pack. Prior to the tax increase, 5 million packs were sold each year. The new equilibrium quantity is 4 million packs a. Calculate the total revenue before and after the tax increase. Before the increase, tax revenue was $ million. After the increase, tax revenue was $ million. Question 3 b. Revenue ( Select ] which tells us that the [ Select ] V dominated.

Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781305971509

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter8: Application: The Costs Of Taxation

Section: Chapter Questions

Problem 4CQQ

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