Suppose the demand function for cigarettes is given by Qd=80-20p and the supply is by Qs=10p-10. Suppose the government introduce a specific tax of t=1 to be levied from the produces. 1. Obtain the new supply Curve 2. Determine the new equilibrium quantity and price  3.compute the government revenue 4. Compute the incidence (burden) on the consumer 5. Compute the incidence (burden)on producers  6. Compute the dead weigh loss  7. Draw a diagram with all your analysis

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A:

Q: all parts need.

A: 1. Market Clearing Price and Equilibrium QuantityGiven:Demand Function: QD(P)=50− P Supply Function:…

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A: Qd = 1000 -8P (Demand) 8P = 1000 - QP = 1000 - Q8Pd = 125 - 0.125Q Qs = 2P (Supply) Before Tax  Qd =…

Q: tax

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A: Equilibrium is achieved where quantity supplied equals quantity demanded.