answer question

2. Consider a governinent that wants to raise revenue by implementing per unit tax of t on a commodity. The government has a choice of taxing one of two mar- kets. Both markets have the usual downward-sloping, linear demand curves. However, the demand curve in market 1 is steeper than the demand curve in market 2 {that is, the demand in market 1 is relatively less elastic than mar- ket 2). To keep the situation simple, assume that the two markets have exactly the same supply curve that is perfectly elastic at price g3. Assume further that the equilibrium quantity prior to taxation is also the same in both markets. (a) What are some possible reasons for taxing market 1 rather than market 2? (b) What are some possible reasons for taxing market 2 rather than market 1? (c) Use your an3wers above to explain whether government should tax cigarettes