Answer to Question #8083 in Macroeconomics for harjinder

Question

Draw a graph showing the effect of a tobacco tax on the market for cigarettes.lebel on your diagram the price increse,the old and new equilibrium points, the areas of consumer surplus,producer surplus,consumer tax incidence,producer taxinsidence,consumer deadweight loss and producer deadweight loss.then explain briefly the processes involved in the graph and describe how the imposition of this tax affect allocative efficinecy.