The graph on the right represents the market for cigarettes after the government has imposed a tax on cigarettes.

According to the graph, how much is the government tax on cigarettes?

$ per pack (Enter a numeric response using a real number rounded to two decimal places.) What price do producers receive after paying the tax?

$ per pack (Enter a numeric response using a real number rounded to two decimal places.) How much tax revenue does the government collect?

$ billion per year (Enter a numeric response using a real number rounded to two decimal places.) Calculate the tax incidence borne by consumers and producers.

% of the tax incidence is borne by consumers and of of the tax incidence is borne by producers. (Enter numeric responses using a real numbers rounded to two decimal places.)

Who bears the greatest proportion of the tax incidence, consumers or producers?

Answer rating: 100% (QA)

1 Government tax on cigarettes Vertical distance between S2 and S1 125 2 Price do p... View the full answer