1. Please explain what would happen to the market-clearing prices and quantities of e-cigarettes in the U.S. under the following hypothetical scenarios.

a. The federal government imposed a $1 per pack excise tax on cigarettes. (5 points)

b. FDA denied 200 e-cigarette companies' Premarket Tobacco Product Applications, which would have allowed these companies to continually legally sell/market their products in the U.S. if approved. (5 points)

c. Scientific evidence emerged that e-cigarettes are able to help smokers quit smoking successfully and this information has been accurately communicated to the public. (5 points)