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(with no taxes). Quantity (millions) s a $3-per-pack tax on cigarettes. Show the effect this graph using a computer (perhaps using it by hand and

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(with no taxes). Quantity (millions) s a $3-per-pack tax on cigarettes. Show the effect this graph using a computer (perhaps using it by hand and m to it to show the effect Suppose that the government put of the tax in a graph. You can either modify Paint or a similar program). or carefully copy of the tax. A. I suggest that you start by drawing a new supply curve now that sellers have an additional 53 cost. (2 points) B. Because of this added cost, the new market equilibrium price is equilibrium quantity is (2 points) C. Identity in that graph: I and the new . producer surplus . consumer surplus . government revenue . deadweight loss after the tax. (8 points)

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