New York has the highest cigarette taxes in the country. The price of an average pack of cigarettes in New York City is $13. The combined state and city taxes are $5.85 a pack. The average income of smokers is less than that of nonsmokers.

Draw a graph to show the effects of the cigarette 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?