use the graph of the market for cigarettes to answer the following questions. according to the graph, how…

use the graph of the market for cigarettes to answer the following questions. according to the graph, how much is the government tax on cigarettes? $3.00 per pack. (enter your response rounded to two decimal places.) what price do producers receive after paying the tax? $ per pack. (enter your response rounded to two decimal places.)

use the graph of the market for cigarettes to answer the following questions. according to the graph, how much is the government tax on cigarettes? $3.00 per pack. (enter your response rounded to two decimal places.) what price do producers receive after paying the tax? $ per pack. (enter your response rounded to two decimal places.)

Answer

Explanation:

Step1: Locate equilibrium points

Find the new - equilibrium quantity after tax on the graph. Then find the price on the supply curve and the demand curve at this quantity.

Step2: Determine producer price

The price producers receive is the price on the supply curve at the quantity traded after the tax is imposed. From the graph, at the quantity where the tax - affected equilibrium occurs, the price on the supply curve is $4.50 per pack.

Answer:

$4.50