DWL = deadweight loss

Suppose the elasticity of supply of cigarettes is 10. 1) Find estimates of the elasticity of demand for cigarettes, the current tax rate on cigarettes, average price, and annual quantity sold in Florida. Provide your sources. 2) How high would the price, including the tax, need to be to cut consumption by half? 3) How high would the tax have to be to push the after tax price that high? 4) Estimate the consumer and producer burden of the current cigarette tax. 5) How sensitive are your answers to modest errors in estimates of the elasticities of demand and supply? 6) Do you think the tax creates a DWL or improves efficiency? Why