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Suppose the market for cigarettes can be described as follows: Q s = P Q d = 60-P where Q s and Q d are,
Suppose the market for cigarettes can be described as follows:
Qs= P
Qd= 60-P
where Qsand Qdare, respectively, quantity supplied and quantity demanded (in appropriate units) andPdenotes price (in dollars per carton of cigarettes).Suppose the government wants to discourage smoking.In an attempt to do so, it wants to tax the suppliers in a way to bring the price of a carton of cigarettes to $40.Using matrix algebra, find the per unit tax that will achieve this goal. Discuss the incidence of the tax
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