Question: Hello, this is eco course, Pls help me out Question 1: Suppose the market for cigarettes can be represented by the following demand and supply
Hello, this is eco course, Pls help me out

Question 1: Suppose the market for cigarettes can be represented by the following demand and supply equations: a) Find the free market equilibrium: price. quantity, CS, PS, and TS. graph the market below. b) Suppose the government comes in and adds a tax on each box of cigarettes sold and makes W pay for this tax (when they buy the good). The new demand curve with tax is Calculate i. the new equilibrium price and quantity with the tax; ii. how much the tax is per box of cigarettes; iii. the new CS, PS, Tax Revenue, and TS; in the DWL the tax creates (if any}
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
