To finance research on the effects of smoking, then-California governor Arnold Schwarzenegger successfully campaigned for a law that increased the state tax on cigarettes to $3 per pack. Using supply and demand graphs,

a) show how much of this tax is borne by California cigarette buyers versus California cigarette sellers.

b) Using supply and demand diagrams, indicate how, if at all, your answer would change if you were looking only at potential smokers rather than existing smokers.

c) What do you think will happen to the number of trips California smokers take annually to Nevada, where cigarettes aren’t taxed? Explain your answer.