The market supply of cigarettes is shown in the table below.
Supply of Cigarettes
Quantity o...
Business, 22.07.2020 03:01 cayleemiller02
The market supply of cigarettes is shown in the table below.
Supply of Cigarettes
Quantity of Cigarettes Supplied (packs)
Price (dollars) Pre-Tax Post-Tax
$1.00 100 0
1.50 150 0
2.00 200 50
2.50 250 100
3.00 300 250
Suppose that in order to discourage people from smoking the government decides to place an excise tax on every pack of cigarettes sold. As a result of the tax, the supply of cigarettes decreases by 150 packs of cigarettes at each price.
Graph the pre-tax market and after-tax market supply curves.
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