Help please 29 KNew York has the highest cigarette taxes in the country. The price of an average pack of cig.and city taxes are $5.95 a pack. The average income of smokers is less than that of non-smoDraw a graph to show the effects of the $5.95 tax on the buyer's price, the seller's price, the qthe buver or seller pay more of the tax? Why?Draw a point at the new equilibrium quantity to show the price paid bybuyers. Label it 2.Draw a point at the new equilibrium quantity to show the price receivedby the seller. Label it 3.Draw a shape that represents the tax revenue received by thegovernment.Thepays more of the tax becauseOA. seller; the elasticity of demand is greater than the elasticity ofsupplyOB. buyer; the elasticity of supply is greater than the elasticity ofdemandO c.O D.buyer; sellers can always pass on the tax to buyersseller, competition among sellers forces sellers to absorb thetax and not pass it on to buyersSelected:none6-4-16-1412-10-8-2-D26-24-22-20-18-PricDelete New York has the highest cigarette taxes in the country. The price of an average pack of cigarettes in New York City is $10.60. The combined stateand city taxes are $5.95 a pack. The average income of smokers is less than that of non-smokers.Draw a graph to show the effects of the $5.95 tax on the buyer's price, the seller's price, the quantity of cigarettes bought, and the tax revenue. Doesthe buver or seller Dav more of the tax? Why?The graph shows the market for cigarettes with no tax.Draw a point to show the market equilibrium quantity and price. Label it1.Draw a line that shows how a $6 per pack tax changes the supply ofcigarettes. Label it S + tax.Draw a point at the new equilibrium quantity to show the price paid bybuyers. Label it 2.Draw a point at the new equilibrium quantity to show the price receivedby the seller. Label it 3.Draw a shape that represents the tax revenue received by thegovernment.Thepays more of the tax becauseO A. seller; the elasticity of demand is greater than the elasticity ofsupplyOB. buyer; the elasticity of supply is greater than the elasticity ofdomandSelected:none▸826-24-22-20-18-16-14-12-10-8-6-4-2-0UPrice (dollars per pack)Delete Clear ?DSQNext

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K New York has the highest cigarette taxes in the country. The price of an average pack of cig. and city taxes are $5.95 a pack. The average income of smokers is less than that of non-smo Draw a graph to show the effects of the $5.95 tax on the buyer's price, the seller's price, the q the buver or seller pay more of the tax? Why? Draw a point at the new equilibrium quantity to show the price paid by buyers. Label it 2. Draw a point at the new equilibrium quantity to show the price received by the seller. Label it 3. Draw a shape that represents the tax revenue received by the government. The pays more of the tax because OA. seller; the elasticity of demand is greater than the elasticity of supply OB. buyer; the elasticity of supply is greater than the elasticity of demand O c. buyer; sellers can always pass on the tax to buyers OD. seller, competition among sellers forces sellers to absorb the tax and not pass it on to buyers Selected: none 6- 4- 16- 14- 12- 10- 8- 2- 0 26- 24- 22- 20- 18- Pric Delete

K New York has the highest cigarette taxes in the country. The price of an average pack of cig. and city taxes are $5.95 a pack. The average income of smokers is less than that of non-smo Draw a graph to show the effects of the $5.95 tax on the buyer's price, the seller's price, the q the buver or seller pay more of the tax? Why? Draw a point at the new equilibrium quantity to show the price paid by buyers. Label it 2. Draw a point at the new equilibrium quantity to show the price received by the seller. Label it 3. Draw a shape that represents the tax revenue received by the government. The pays more of the tax because OA. seller; the elasticity of demand is greater than the elasticity of supply OB. buyer; the elasticity of supply is greater than the elasticity of demand O c. buyer; sellers can always pass on the tax to buyers OD. seller, competition among sellers forces sellers to absorb the tax and not pass it on to buyers Selected: none 6- 4- 16- 14- 12- 10- 8- 2- 0 26- 24- 22- 20- 18- Pric Delete

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter6: Supply, Demand And Government Policies

Section6.2: Taxes

Problem 2QQ

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The following graph shows the daily market for wine. Suppose the government institutes a tax of $23.20 per bottle. This places a wedge between the price buyers pay and the price sellers receive. Fill in the following table with the quantity sold, the price buyers pay, and the price sellers receive before and after the tax. Using the data you entered in the previous table, calculate the tax burden that falls on buyers and on sellers, respectively, and calculate the price elasticity of demand and supply over the relevant ranges using the midpoint method. Enter your results in the following table. The burden of the tax falls more heavily on the ___ elastic side of the market.
In his fiscal year(FY0 2015 budget proposal, President Obama envisions another hike in the federal excise tax on cigarettes. He engineered a tripling of the tax-form 39 cents to $1.01 per pack- in 2009. Now he wants to hike the tax by another 94 cents, to $1.95 per pack. It's easy to see why Obama(himself a smoker) likes the idea. The 2009 tax hike brought an extra $9 billion a year into the U.S. treasury, it also reduced smoking and smoking-related health costs. This time around the Congressional Budget office projects a 94 cent tax hike will increase federal revenue by $78 billion over ten years, helping to bring down project deficits. The CBO also projects that the higher price will reduce the number of smokers by 2.5 million and the number of smoking-related deaths by 18,000 over the same period. Smokers don't like the idea at all,of course.Nor do the states,which will see their own tax revenues decline along with the cigarette sales. and convenience stores like 7-Eleven will see a…