4. The Laffer curve ips Government-Imposed taxes cause reductions in the activity that is being taxed, which has important Implications for revenue collections. ips 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. Graph Input Tool (? 100 Market for Gin Supply Quantity 48 (Bottles) Demand Price 60.00 Supply Price 40.00 (Dollars per bottle) (Dollars per bottle) Tax 20.00 (Dollars per bottle) 6 8 8 6 8 8 8 8 8 PRICE (Dollars per bottle) Demand 0 12 24 36 48 60 72 84 96 108 120 QUANTITY (Bottles)