Question 6.

(a) Consider the market for face-mask. In the backdrop of COVID-19 pandemic, if the government imposes a sales tax on face-mask, how the tax burden will be distributed between the consumer and the seller of face-masks? Explain with an adequate graph.

(b) A garment factory was initially at a Long-run equilibrium. How the long-run equilibrium of this firm will be adjusted due to the COVID-19 pandemic? Explain with the adequate graph.