According to the graph, how much is the government tax on cigarettes? $1.5 per pack. (Enter your response rounded to two decimal places.) What price do producers receive after paying the tax? $4 per pack. (Enter your response rounded to two decimal places.) How much tax revenue does the government collect? $21 billion dollars per year. (Enter your response rounded to two decimal places.) If the tax were collected from the buyers of cigarettes, the graph would differ from the one shown here by having A. no shifts at all. B. demand shift down simultaneously with, and by the same amount as, the upward shift in supply. C. demand shift up by the tax per pack instead of supply shifting up by the tax per pack. D. demand shift down by the tax per pack instead of supply shifting up by the tax per pack. With the tax being collected from the buyers instead of the producers, the new equilibrium price that they would pay C Price (dollars per pack) 12.00- 11.00- 10.00- 9.00- 8.00- 7.00- 6.00- 5.00- 4.00- 3.00- 2.00- 1.00- 0.00+ 0 S2₂ S D 4 8 12 16 20 24 28 32 36 Quantity (billions of packs per year) 40
According to the graph, how much is the government tax on cigarettes? $1.5 per pack. (Enter your response rounded to two decimal places.) What price do producers receive after paying the tax? $4 per pack. (Enter your response rounded to two decimal places.) How much tax revenue does the government collect? $21 billion dollars per year. (Enter your response rounded to two decimal places.) If the tax were collected from the buyers of cigarettes, the graph would differ from the one shown here by having A. no shifts at all. B. demand shift down simultaneously with, and by the same amount as, the upward shift in supply. C. demand shift up by the tax per pack instead of supply shifting up by the tax per pack. D. demand shift down by the tax per pack instead of supply shifting up by the tax per pack. With the tax being collected from the buyers instead of the producers, the new equilibrium price that they would pay C Price (dollars per pack) 12.00- 11.00- 10.00- 9.00- 8.00- 7.00- 6.00- 5.00- 4.00- 3.00- 2.00- 1.00- 0.00+ 0 S2₂ S D 4 8 12 16 20 24 28 32 36 Quantity (billions of packs per year) 40
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
can you let me know if these are correct? if its wrong please let me know the correct answer thanks
Transcribed Image Text:According to the graph, how much is the government tax
on cigarettes?
1.5 per pack. (Enter your response rounded to two
decimal places.)
What price do producers receive after paying the tax?
$4
per pack. (Enter your response rounded to two
decimal places.)
How much tax revenue does the government collect?
$ 21 billion dollars per year. (Enter your response rounded
to two decimal places.)
If the tax were collected from the buyers of cigarettes, the
graph would differ from the one shown here by having
A. no shifts at all.
B. demand shift down simultaneously with, and by
the same amount as, the upward shift in supply.
O C. demand shift up by the tax per pack instead of
supply shifting up by the tax per pack.
D. demand shift down by the tax per pack instead of
supply shifting up by the tax per pack.
With the tax being collected from the buyers instead of the
producers, the new equilibrium price that they would pay
Price (dollars per pack)
12.00
11.00-
10.00-
9.00-
8.00-
7.00-
6.00-
5.00-
4.00+
3.00-
2.00-
1.00-
0.00-
0
4
S₂
S₁
D
8 12 16 20 24 28 32 36 40
Quantity (billions of packs per year)
Transcribed Image Text:$1.5 per pack. (Enter your response rounded to two
decimal places.)
What price do producers receive after paying the tax?
$4 per pack. (Enter your response rounded to two
decimal places.)
How much tax revenue does the government collect?
$ 21 billion dollars per year. (Enter your response rounded
to two decimal places.)
If the tax were collected from the buyers of cigarettes, the
graph would differ from the one shown here by having
A. no shifts at all.
B. demand sh
the same a
C. demand sh
supply shift
D. demand sh
supply shift
increase
decrease
not change
With the tax being
producers, the new
the producers will decrease
/ with, and by
shift in supply.
ck instead of
ack.
pack instead of
ack.
ers instead of the
they would pay
Price (dollars per pack)
12.00-
11.00-
10.00-
9.00-
8.00-
7.00-
6.00-
5.00-
4.00-
3.00-
2.00-
1.00-
0.00+
0
S₂
S₁
D
4 8 12 16 20 24 28 32 36 40
Quantity (billions of packs per year)
Expert Solution
Step 1: Introduction
The production of goods in the economy is associated with costs and benefits to society. If the consumption of any good affects the health of a consumer then the market for such goods should bear some extra costs. Such costs are imposed by the government in the form of tax on the market.
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