Help29 question 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.5Draw 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.The07 20pays more of the tax because_______.O A. seller; the elasticity of demand is greater than the elasticity ofsupply%B. buyer; the elasticity of supply is greater than the elasticity ofdemandOC. buyer; sellers can always pass on the tax to buyersOD. seller; competition among sellers forces sellers to absorb thetg6yh&7Ouj*8.-Ok6926-24-22-20-18-16-11614-12-10-8-6-4-2-0-✓0Price (dollars per pack)0VрQuantity (millions of packs)..ADD ALABEL11SDO+NextQUSseUbacks 5New 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 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 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.pays more of the tax because___________.OA. seller, the elasticity of demand is greater than the elasticity ofsupplyOB. buyer; the elasticity of supply is greater than the elasticity ofThetg6yJ&7OU*8O(9O26-2422-20-18-16-1614-12-10-8-Price (dollars per pack)4-2р+ 11=ADD ALABELHNext36QGUSsep-seebackspa

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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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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