Excise Taxes, Budget Constraints and Utility Analysis 1) In each of the following cases involving taxes, explain: () whether the incidence of the tax falls more heavily on consumers or producers, (ii) why government revenue raised from the tax is not a good indicator of the true cost of the tax. You may find it useful to draw a graph in each case to make your points. a) The government imposes and excise tax on the sale of all college textbooks. Before the tax was imposed, 1 million textbooks were sold every year at a price of $50. After the tax is imposed, 600,000 books are sold yearly, students pay $55 per book, $30 of which publisher receive. b) The government imposed an excise tax on the sale of all airline tickets. Before the tax was imposed, 3 million airline tickets were sold every year at a price of $500. After the tax is imposed, 1.5 million tickets are sold yearly; travelers pay $550 per ticket, $450 of which the airline receives