o. . Book1 Q . Search Sheet Home Insert Page Layout Formulas Data Review View Add-ins '+ Share ~ = Conditional Formatting 14#1 Calibri (Body) * 12 A- A % " E Format as Table B I UTTA. Number Cells Editing Pasto Cell Styles . * Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates. Check for Updates US + X V fx I J K LM NO P Q R S T U V W X Y Z AA AB AC AD AE AF AG AH AI AJ AK AL W N Price ($ per pack) 1.60 $1 11 1.40 12 1.30 13 1.20 14 1.15 -D 15 1.00 16 17 0.80 - 18 19 0.60 20 21 0.40 22 23 0.20 - 24 25 0 26 2 4 Quantity (Millions of pack per year) 27 28 Sheet1 + + 131% ReadySuppose that a per-unit tax of 25 centavos per pack is placed on the sale of cigarettes by the government, shifting the market supply of cigarettes from 81 to 32 as shown. Answer the following questions regarding this case. 1. What is the price to be paid by the buyers after the tax is imposed? How much is the rise in the price paid by consumers? (3 points) 2. What is the net price received by the sellers after the taxis imposed? How much is the fall in the price received by the producers? (3 points) 3. Prove that the increase (or change) in the price is dependent on the elasticity of demand and supply. (3 points) 4. Determine burden of the tax (or the incidence of the tax that falls on consumers and producer). Who gets most of the burden of the tax. Answer on the basis of elasticity. (8 points) 5. How much tax revenue is expected by the government to be raised for this good per year? (3 points) SHOW STEPS AND SOLUTION\