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Suppose that the government imposes a tax on cigarettes. Use the diagram below to answer the questions. D is the demand curve before tax, 5
Suppose that the government imposes a tax on cigarettes. Use the diagram below to answer the questions. D is the demand curve before tax, 5 is the supply curve before tax and S, is the supply curve after the box (5) For the market for cigarettes without the tax Indicate: Price paid by consumers Price paid by producers Quantity of cigarettes pold Buyer's reservation price Seller's reservation price Seller's reservation price Choose- # Choose Price paid by consumers 10 18 Quantity of cigarettes sold 3 12 Buyer's reservation price Choose.. * Price paid by producers Choose(bj Calculate the consumer surplus before the tac. Answer (c) Calculate the producer surplus before the tax. Answer (d) For the market for cigarettes with the tax Indicate: the tix Price paid by consumers Price received by producers Quantity of cigarettes sold Price received by producers Choose.. # Quantity of cigarettes sold Choose Price paid by consumers 10 the tax 3: 12 18(el O) Calculate the consumer surplus after the tax. Answer (el mo Calculate the producer surplus after the tax. Answer (e) pin Tax revenue. Answer [e] ov) Deadweight loss Answer.[e] () Total surplus after tax
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