u." Ci'britB...v12 VA"A' Av p EEViEHEV +_=+_= \"T $ Eetn at o a o Tia3% :9 A\" if Q\" 2 ::- . . 3 I g v 99 x2 x A v I v Av & v . v Al, {I Styles Styles Dictate Editor .Pane .' " 4 S (Q 1. Per-Unit Taxes One of the goals of per pack taxes on cigarettes is to raise revenue for the government. Would a price elastic or price inelastic demand for cigarettes result in more tax revenue? Assume that the cigarette taxis statutorily imposed on the suppliers of cigarettes (in other words, the law authorizing the tax states that the sellers would pay the tax). Explain in words and graphically. "i z. Per-U nit Subsidies ' Electric cars do not use gas and they do not produce tailpipe emissions. As a result l there has been interest in using government policies to foster the use of electric cars. l ., c. a. Assume'that the U.S. government decides to provide a subsidy for each electric ate car purchased and that the subsidy is statutorily provided to electric car buyers net (in other wigrds, the law authorizing the subsidy states that the buyers would receive the subsidy). How would the price that electric car buyers pay, the amount the electric car sellers receive, and the quantity of electric cars sold change as a resultotthis policy? Explain in words and graphically. b. How would you expect the introduction of the subsidy for electric cars to change n the price and quantity of gas-fueled cars purchased? Explain in words and 9 ta" graphically