Question

answer choices are : decrease, not change, increase

L e response rounded to decimal places.) What price do producers receive after paying the tax? $5 per pack (Enter your response rounded to two decimal places) How much tax revenue does the government collect? $ 27 billion dollars per year. (Enter your response rounded to two decimal places) If the tax were collected from the buyers of cigarettes, the graph would differ from the one shown here by perc ving Price della O A no shifts at all. OB. demand shift down simultaneously with, and by the same amount as the words in supply O C demand shift up by the tax per pack instead of supply shifting up by the tax per pack o demand shift down by the tax per pack instead of supply shifting up by the tax per pack With the tax being collected from the buyers instead of the producers, the new equilibrium price that they would pay the producers will Click to select your answer(s) and then click Check Answer

Answer 1

The answer is not change

This is because the change in price paid by the buyers and received by the sellers as a result of tax remains the same whether the tax is imposed on the buyers or on the sellers. if there is no change in the elasticity of demand and supply then everything remains the same. Price consumers will pay will still be $6.5 and the price received by producers will still be $5.