4. The Laffer curve Government-imposed taxes cause reductions in the activity that is being taxed, which has important implications for revenue collections. To understand the effect of such a tax, consider the monthly market for gin, which is shown on the following graph. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. PRICE (Dollars per bottle) Supply 00 70 40 201 10 8822222 & 20 100 Demand 0 20 40 60 80 100 120 140 160 180 200 QUANTITY (Bottles) Graph Input Tool Market for Gin Quantity (Bottles) 80 Demand Price (Dollars per bottle) 60.00 Supply Price (Dollars per bottle) 40.00 Tax 20.00 (Dollars per bottle)