Using a Supply and Demand Graph,illustrate the Effect of an Increase

question 29

Essay

Using a supply and demand graph,illustrate the effect of an increase in the federal cigarette tax of $1.00 per pack,where the entire tax burden falls on the consumer.Assume the equilibrium price before the tax is $5.00 per pack and the equilibrium quantity is 30 million packs.
After the implementation of the tax,what are the equilibrium price and equilibrium quantity?

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Definitions:

Syndesmosis

A type of fibrous joint where bones are connected by ligaments, such as the distal tibiofibular joint in the ankle.

Symphysis

A symphysis is a type of cartilaginous joint where the bones are joined by fibrocartilage, such as the pubic symphysis in the pelvis.

Articular Cartilage

A type of smooth, white tissue that covers the ends of bones where they come together to form joints.

Synovial Joints

Joints that are surrounded by a fluid-filled capsule, allowing for considerable movement between the adjoining bones.