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Use the following to answer the next 3 questions Graph below shows the demand for cigarillos (a tobacco product) each month. The price per box

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Use the following to answer the next 3 questions Graph below shows the demand for cigarillos (a tobacco product) each month. The price per box is $60. Suppose the government imposes a tax of $22 per box towards its goal of discouraging the use of tobacco products. Q (boxes) 10b 20b 300 400 500 2) The inefficiency of the tax as measured by the loss of total surplus is a. 1500 b. 1200 c. 1100 d. 900 e. none of the above 3) If instead of a tax of $22 per box the government imposed a price floor of $80. The resulting inefficiency would be the same as the inefficiency caused by the tax a. True b. False 4) In either case (tax or floor) the price per box is higher. This increasing in price is an indicator/measure of inefficiency a. True b. False

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