Use the expression for excess burden EBx= (.5pxxtx2 )/(1/ +1/) (where is the absolute value of the compensated price elasticity of demand and

Use the expression for excess burden EBx= (.5pxxtx2 )/(1/η +1/ε) (where η is the absolute value of the compensated price elasticity of demand and ε is the supply elasticity) to estimate the annual excess burden of a tax on cigarettes using the following information:
a. The excise tax is $0.20/pack.
b. The compensated elasticity of demand for cigarettes is η = 0.5.
c. The elasticity of supply is ε = 0.75.
d. In the absence of the tax, the equilibrium price of cigarettes is $1/pack and the equilibrium quantity is 500 million packs.