Please assist with the following questions 1. Calculate the  (i)  consumer surplus BREFORE THE TAX  (ii) producers surplus BEFORE THE TAX 2. For the market of cigarettes WITH THE TAX please indicate  (i) the tax  (ii) price paid by consumers  (iii) price received by producers  (iv) Quantitiy of cigarettes sold

Principles of Microeconomics (MindTap Course List)
8th Edition
ISBN:9781305971493
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter6: Supply, Demand And Government Policies
Section: Chapter Questions
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Please assist with the following questions

1. Calculate the 

(i)  consumer surplus BREFORE THE TAX 

(ii) producers surplus BEFORE THE TAX

2. For the market of cigarettes WITH THE TAX please indicate 

(i) the tax 

(ii) price paid by consumers 

(iii) price received by producers 

(iv) Quantitiy of cigarettes sold

 

thank you

Question 5
Suppose that the government imposes a tax on cigarettes. Use the diagram below to
answer the questions. D is the demand curve before tax, S is the supply curve before tax
and St is the supply curve after the tax.
Price
ST
18
12
10
8
7
10 12
Qua
(a) For the market for cigarettes without the tax. Indicate:
Created by Paint S
Price paid by consumers
Price paid by producers
Quantity of cigarettes sold
Buyer's reservation price
Seller's reservation price
Transcribed Image Text:Question 5 Suppose that the government imposes a tax on cigarettes. Use the diagram below to answer the questions. D is the demand curve before tax, S is the supply curve before tax and St is the supply curve after the tax. Price ST 18 12 10 8 7 10 12 Qua (a) For the market for cigarettes without the tax. Indicate: Created by Paint S Price paid by consumers Price paid by producers Quantity of cigarettes sold Buyer's reservation price Seller's reservation price
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