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2. Suppose 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 S1 to $2 as shown. Answer the following questions regarding this case. Price (S per pack) 1.60- 1.40 130 1.20 - 1.00 0.80 0.60 0.40 0.20 Quantity (Millions of pack per year) 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 tax is 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. (8 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)