Figure 10.18 below shows the supply and demand curves for cigarettes. The equilibrium price in the market is $2 per
a) What is the size of the tax per unit that would achieve the government's target of 600 million packs sold in the market? What minimum price would achieve the target? Explain.
b) Using areas in the graph, answer the following.
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Question Posted: March 17, 2016 04:58:24