Smoking is considered as not good to health to both smokers and non-smokers.In case of this,theHongKonggovernmenthasimplementeddifferentmethodstopreventpeoplefrom smoking, such as making indoor smoking illegaland increase the sales tax on selling cigarette.

1. What will be the effect towardsthe equilibrium price and quantity ofcigarette after the government makesit illegaltosmokeindoor.Explainwithsuitablediagram.(5marks)
2. Ifthe Price ElasticityofDemand for cigaretteis"lessthan1", what willbe the taxeffect towards the suppliers and consumers if the government imposes sales tax on sellers. Explain with suitable diagram. (5marks)
3. If the Price Elasticityof Demand for cigarette is "greater than 1", what will be the tax effect towardsthe suppliersand consumers ifthe government imposessalestaxonbuyers. Explain with suitable diagram. (5 marks)
4. Ifthe monthlyincomeofsmokers increase from$10,000to$11,000,thequantitysoldof cigarette will be reduced from1,000 packs to 900packs per month.To smokers, what kind of cigarette does it belong to?Please explain with detail calculation. (5 marks)