The government raises taxes on cigarettes from $1 per to $2 per pack. Prior to the tax increase, 5 million packs were sold each year. The new equilibrium quantity is 4 million packs. a. If demand is elastic, an increase in the level of a tax will _______ tax revenue.  - increase, decrease or not change.    b. All other things equal, a tax on ________ (hamburgers, breakfast cereal, luxury watches, or cigerattes) would be likely to raise the greatest revenue because demand is most _________ (elastic, inelastic or unit elastic).    c. All other things equal, a tax on  ________ (hamburgers, breakfast cereal, luxury watches, or cigerattes)  would cause the greatest deadweight loss.

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