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The graph shows the market for cigarettes with no tax. Draw a point to show the market equilibrium quantity and price. Label it 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 % OB. 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 6 & 7 O * 8 O 9 26- 24- 22- 20- 18- 16 14- 12- 10- 8- 6- 4- 2- 0 ✓ 0 0 Price (dollars per pack) 16 V M 15 Quantity (millions of packs) ADD ALABEL S + Next Q O ba

The graph shows the market for cigarettes with no tax. Draw a point to show the market equilibrium quantity and price. Label it 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 % OB. 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 6 & 7 O * 8 O 9 26- 24- 22- 20- 18- 16 14- 12- 10- 8- 6- 4- 2- 0 ✓ 0 0 Price (dollars per pack) 16 V M 15 Quantity (millions of packs) ADD ALABEL S + Next Q O ba

Principles of Microeconomics
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter6: Supply, Demand And Government Policies
Section: Chapter Questions
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The graph shows the market for cigarettes with no tax. Draw a point to show the market equilibrium quantity and price. Label it 1. Draw a line that shows how a $6 per pack tax changes the supply of cigarettes. Label it S + tax. 5 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 07 20 pays more of the tax because_______. O A. 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 t g 6 y h & 7 O u j * 8 .- O k 69 26- 24- 22- 20- 18- 16-116 14- 12- 10- 8- 6- 4- 2- 0- ✓ 0 Price (dollars per pack) 0 V р Quantity (millions of packs) .. ADD ALABEL 11 S DO + Next Q US se U backs
Transcribed Image Text:The graph shows the market for cigarettes with no tax. Draw a point to show the market equilibrium quantity and price. Label it 1. Draw a line that shows how a $6 per pack tax changes the supply of cigarettes. Label it S + tax. 5 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 07 20 pays more of the tax because_______. O A. 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 t g 6 y h & 7 O u j * 8 .- O k 69 26- 24- 22- 20- 18- 16-116 14- 12- 10- 8- 6- 4- 2- 0- ✓ 0 Price (dollars per pack) 0 V р Quantity (millions of packs) .. ADD ALABEL 11 S DO + Next Q US se U backs
5 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 and 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. Does the buyer or seller pay 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 it 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. 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 The t g 6 y J & 7 O U * 8 O ( 9 O 26- 24 22- 20- 18- 16-16 14- 12- 10- 8- Price (dollars per pack) 4- 2 р + 11 = ADD ALABEL H Next 36 Q G US se p- see backspa
Transcribed Image Text:5 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 and 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. Does the buyer or seller pay 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 it 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. 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 The t g 6 y J & 7 O U * 8 O ( 9 O 26- 24 22- 20- 18- 16-16 14- 12- 10- 8- Price (dollars per pack) 4- 2 р + 11 = ADD ALABEL H Next 36 Q G US se p- see backspa
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