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 state The graph shows the market for cigarettes with no tax. Draw a point to show the market equilibrium quantity and price. Label it 1. 1.... Draw a line that shows how a $6 per pack tax changes the supply of cigarettes. Label it S + tax. 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 B. buyer; the elasticity of supply is greater than the elasticity of demand OC. buyer; sellers can always pass on the tax to buyers OD. seller; competition among sellers forces sellers to absorb the 26- 24- 22- 20- 18- 16- 14- 12- 10- 84 6- 4- 2- Price (dollars per pack) 1 D 2 3 5 Quantity (millions of packs) S
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 state The graph shows the market for cigarettes with no tax. Draw a point to show the market equilibrium quantity and price. Label it 1. 1.... Draw a line that shows how a $6 per pack tax changes the supply of cigarettes. Label it S + tax. 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 B. buyer; the elasticity of supply is greater than the elasticity of demand OC. buyer; sellers can always pass on the tax to buyers OD. seller; competition among sellers forces sellers to absorb the 26- 24- 22- 20- 18- 16- 14- 12- 10- 84 6- 4- 2- Price (dollars per pack) 1 D 2 3 5 Quantity (millions of packs) S
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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