According to the graph, how much is the government tax on cigarettes? $1.5 per pack. (Enter your response rounded to two decimal places.) What price do producers receive after paying the tax? $4 per pack. (Enter your response rounded to two decimal places.) How much tax revenue does the government collect? $21 billion dollars per year. (Enter your response rounded to two decimal places.) If the tax were collected from the buyers of cigarettes, the graph would differ from the one shown here by having A. no shifts at all. B. demand shift down simultaneously with, and by the same amount as, the upward shift in supply. C. demand shift up by the tax per pack instead of supply shifting up by the tax per pack. D. demand shift down by the tax per pack instead of supply shifting up by the tax per pack. With the tax being collected from the buyers instead of the producers, the new equilibrium price that they would pay C Price (dollars per pack) 12.00- 11.00- 10.00- 9.00- 8.00- 7.00- 6.00- 5.00- 4.00- 3.00- 2.00- 1.00- 0.00+ 0 S2₂ S D 4 8 12 16 20 24 28 32 36 Quantity (billions of packs per year) 40
According to the graph, how much is the government tax on cigarettes? $1.5 per pack. (Enter your response rounded to two decimal places.) What price do producers receive after paying the tax? $4 per pack. (Enter your response rounded to two decimal places.) How much tax revenue does the government collect? $21 billion dollars per year. (Enter your response rounded to two decimal places.) If the tax were collected from the buyers of cigarettes, the graph would differ from the one shown here by having A. no shifts at all. B. demand shift down simultaneously with, and by the same amount as, the upward shift in supply. C. demand shift up by the tax per pack instead of supply shifting up by the tax per pack. D. demand shift down by the tax per pack instead of supply shifting up by the tax per pack. With the tax being collected from the buyers instead of the producers, the new equilibrium price that they would pay C Price (dollars per pack) 12.00- 11.00- 10.00- 9.00- 8.00- 7.00- 6.00- 5.00- 4.00- 3.00- 2.00- 1.00- 0.00+ 0 S2₂ S D 4 8 12 16 20 24 28 32 36 Quantity (billions of packs per year) 40
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter6: Supply, Demand And Government Policies
Section: Chapter Questions
Problem 7PA
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can you let me know if these are correct? if its wrong please let me know the correct answer thanks
Expert Solution
Step 1: Introduction
The production of goods in the economy is associated with costs and benefits to society. If the consumption of any good affects the health of a consumer then the market for such goods should bear some extra costs. Such costs are imposed by the government in the form of tax on the market.
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