The government is in need of tax revenue and has narrowed down the choice of markets to tax to two: cigarettes or t-shirts. The markets are summarised below.

Cigarettes

Demand: P = 100 - 4Q

Supply: P = Q

T-shirts

Demand: P = 35 - Q

Supply: P = 5 + Q

Graph the two markets and calculate the equilibrium price and quantity.

If the government implemented a $5 tax on each market, how much tax revenue could each market generate?

If you were an economic advisor, which market would you suggest taxing and why?