Question 5 28 pts Suppose a public referendum is being held on whether or not to levy a tax on cigarettes. Currently, the supply of cigarettes is given by Qs = -200 + 8P. You estimate the demand for cigarettes to be Qd = 200 - 2P. You are asked to evaluate the likely effects of a tax on cigarettes equal to $5 per pack of cigarettes. Specifically, you are to file a report which predicts by how much this will reduce the amount of cigarettes sold. You are also asked to estimate the proportion of the tax that will be paid by the cigarette companies (sellers), and the proportion of the tax that will be paid by the smokers (consumers) of cigarettes. To do this, you will first need to calculate the current price and quantity of cigarettes sold. a) What is the equilibrium price and guantity of cigarettes? The equilibrium price of cigarettes is $ per pack. The equilibrium quantity of cigarettes is packs. Next, you know from your economics class that you will need to calculate the price elasticity of demand and the price elasticity of supply for cigarettes. b) What is the price elasticity of demand for cigarettes at the equilibrium price? The demand elasticity at the equilibrium price is c) What is the price elasticity of supply of cigarettes at the equilibrium price? The supply elasticity at the equilibrium price is Using your answers to b) and c), you are now able to determine what proportion of the tax will be paid by buyers, and what proportion of the tax will be paid by sellers. d) What proportion of the tax will be paid by sellers? The sellers will pay % of the tax. (Express your answer as a percentage and round to two decimal places.) e) What price will buyers pay after the tax is imposed? The price that the buyers will pay after the tax is $ per pack. f) How many packs of cigarettes will be sold after the tax? After the tax, packs of cigarettes will be sold. Note: To earn the full 28 points for this question, you must enter the correct numbers in the blanks above AND upload your work, showing how you arrived at your answers. You will upload this work, along with your work for all the other exam questions, as a single pdf at the end of the exam