Assume that the graph below reflects the market for pack of cigarettes in Virginia. The vertical axis is the price of a pack of cigarettes and the horizontal axis is the packs of cigarettes in thousands. 12 10 9 8 If the state of Virginia imposes a $6 sales tax on a pack of cigarettes and as a result, consumers pay $9 for a pack of cigarettes, then" suppliers are paying 33 percent of the tax and the state will take in $60,000 in tax revenue. consumers are paying 67 percent of the tax and the state will take in $280,000 in tax revenue. consumers are paying 67 percent of the tax and the state will take in $120,000 in tax revenue. suppliers are paying 33 percent of the tax and the state will take in $180,000 in tax revenue. O 10 20 30 40 50 60 70 80 90 100 110 120 Q O O

Assume that the graph below reflects the market for pack of cigarettes in Virginia. The vertical axis is the price of a pack of cigarettes and the horizontal axis is the packs of cigarettes in thousands. 12 10 9 8 If the state of Virginia imposes a $6 sales tax on a pack of cigarettes and as a result, consumers pay $9 for a pack of cigarettes, then" suppliers are paying 33 percent of the tax and the state will take in $60,000 in tax revenue. consumers are paying 67 percent of the tax and the state will take in $280,000 in tax revenue. consumers are paying 67 percent of the tax and the state will take in $120,000 in tax revenue. suppliers are paying 33 percent of the tax and the state will take in $180,000 in tax revenue. O 10 20 30 40 50 60 70 80 90 100 110 120 Q O O

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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