A tax on cigarettes is inefficient since it is non neutral. Using indifference curves explain whether you agree or not. 1. Draw the graph with indifference curves. 2. Do you agree or not. 3. Explain changes in quantity. 4. Explain who does it affect. 5. Pareto optimal point on the graph and the formula for the pareto optimal point. 6. Influence on consumer behaviour.

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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A tax on cigarettes is inefficient since it is non neutral. Using indifference curves explain whether you agree or not.
1. Draw the graph with indifference curves.
2. Do you agree or not.
3. Explain changes in quantity.
4. Explain who does it affect.
5. Pareto optimal point on the graph and the formula for the pareto optimal point.
6. Influence on consumer behaviour.
Transcribed Image Text:A tax on cigarettes is inefficient since it is non neutral. Using indifference curves explain whether you agree or not. 1. Draw the graph with indifference curves. 2. Do you agree or not. 3. Explain changes in quantity. 4. Explain who does it affect. 5. Pareto optimal point on the graph and the formula for the pareto optimal point. 6. Influence on consumer behaviour.
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