# Question: The following diagram shows the supply and demand for cupcakes

The following diagram shows the supply and demand for cupcakes (with quantity measured in dozens).

a. Suppose the government imposes a new sales tax of $6 per dozen cupcakes. What will the new price of cupcakes be?

b. Suppose the government imposes a new excise tax of $6 per dozen cupcakes. What will the new price of cupcakesbe?

a. Suppose the government imposes a new sales tax of $6 per dozen cupcakes. What will the new price of cupcakes be?

b. Suppose the government imposes a new excise tax of $6 per dozen cupcakes. What will the new price of cupcakesbe?

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