Please assist with the following questions1. Calculate the (i) consumer surplus BREFORE THE TAX (ii) producers surplus BEFORE THE TAX2. For the market of cigarettes WITH THE TAX please indicate (i) the tax (ii) price paid by consumers (iii) price received by producers (iv) Quantitiy of cigarettes sold thank you Question 5Suppose that the government imposes a tax on cigarettes. Use the diagram below toanswer the questions. D is the demand curve before tax, S is the supply curve before taxand St is the supply curve after the tax.PriceST1812108710 12Qua(a) For the market for cigarettes without the tax. Indicate:Created by Paint SPrice paid by consumersPrice paid by producersQuantity of cigarettes soldBuyer's reservation priceSeller's reservation price

1. Consumer surplus before tax = 12×18-10×12=48Producer surplus before tax = 12×10-3×12=42

Please assist with the following questions 1. Calculate the (i) consumer surplus BREFORE THE TAX (ii) producers surplus BEFORE THE TAX 2. For the market of cigarettes WITH THE TAX please indicate (i) the tax (ii) price paid by consumers (iii) price received by producers (iv) Quantitiy of cigarettes sold

Please assist with the following questions 1. Calculate the (i) consumer surplus BREFORE THE TAX (ii) producers surplus BEFORE THE TAX 2. For the market of cigarettes WITH THE TAX please indicate (i) the tax (ii) price paid by consumers (iii) price received by producers (iv) Quantitiy of cigarettes sold

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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