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The below graphs show the market for bags of potato chips, which is currently at an equilibrium price of $1.33 per bag and an equilibrium quantity of 5.33 million bags. Suppose that, in an attempt to lower blood pressure and reduce healthcare costs, the government imposes a $1.00 excise (or commodity) tax on potato chips. Please scroll down to answer all 6 questions. 1. Suppose the government levies this tax on 2. Suppose the government levies this tax on manufacturers for each bag of potato chips they consumers for each bag of potato chips they produce. Please shift the curve(s) to illustrate this. purchase. Please shift the curve(s) to illustrate this 5 5 4.5 45 4 4 3.5 3.6 3 Supply Price Price 2.5 Supply 2.5 2 2 1.5 1.5 1 Demand Demand 0.5 0.5 1 2 3 4 5 6 7 9 10 0 1 2 3 4 5 6 7 8 9 10 Quantity QuantityBelow is a hypothetical Lafier curve with two countries located at different points. What does this position on the Laffer curve mean in terms of taxation for the US? Tax revenue The US govemment would bring in less tax revenue by increasing tax rates. The U.S government could bring in more tax revenue by increasing tax rates. The US. government could cut tax rates and increase tax revenue. Sweden Deadweight loss will decrease as the US. 0 moves from its current point on the curve to the top of the "hill." U.S. What does this position on the Laffer curve mean in terms of taxation for Sweden? O The Swedish government could bring in Tax rate more tax revenue by increasing tax rates. Deadweight loss will increase as Sweden moves from its current point on the curve to the top of the "hill." If the Swedish govemment cut tax rates. tax revenue would decrease. The Swedish government would bring in less tax revenue by increasing tax rates