As shown in Exhibit 11, assume the government places a $1 per pack sales tax on cigarettes. The percentage of the burden of taxation paid by consumers of a pack of cigarettes is

a. zero.

b. 25 percent.

c. 50 percent.

d. 100 percent.

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Exhibit 11 Supply and Demand Curves for Cigarettes Price per pack (dollars) 3.50 3.00 2.50 2.00 1.50 Supply after tax Supply before tax 1.00 0.50 0 2 Demand 6 8 10 12 14 Quantity of output (millions of packs per day)