Using the diagram below, answer the following questions: How much is the per-uni
ID: 1211466 • Letter: U
Question
Using the diagram below, answer the following questions:
How much is the per-unit tax on cigarettes?
What price do consumers pay after the tax?
How much tax revenue is collected?
What is the amount of deadweight loss?
Using the diagram below, answer the following questions: a. How much is the per-unit tax on cigarettes? b. What price do consumers pay after the tax? c. How much tax revenue is collected? d. What is the amount of deadweight loss?
Price per pack 55.50 - $5.50 -- S4.50 t-- S4.25 --·-- 18 20 Quantity of Cigarettes billions of packs perExplanation / Answer
a.The tax on per unit of cigarettes is $4.25.
b. It is between0.25 to1.25 depending on the units.
c. Tax revenue collected is $4.25x20= $85.
d. The amount od dead weight loss is 2.
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