7. The accompanying diagram shows the market for cigarettes. The current equilibrium price per pack is $4, and every day 40 million packs of cigarettes are sold. In order to recover some of the health care costs associated with smoking, the government Imposes a tax of $2 per pack. This will raise the equilibrium price to $5 per pack and reduce the equilibrium quantity to 30 million packs. Price of cigarettes (per pack) 30 40 Quantity of cigarettes (millions of packs per day) The economist working for the tobacco lobby claims that this tax will reduce consumer surplus for smokers by $40 mil- lion per day, since 40 million packs now cost $1 more per pack. The economist working for the lobby for sufferers of second hand smoke argues that this is an enormous ovcrest male and that the reduction in consumer surplus will be only $30 million per day, since after the imposition of the tax only 30 million packs of cigarettes will be bought and each of these packs will now cost $1 more. They are both wrong. Why