Figure: Market for Cigarettes A highly effective book on qui…
Figure: Market for Cigarettes A highly effective book on quitting smoking has become a best-seller, making it much easier for smokers to quit. As a result, the market demand for cigarettes has shifted. Using the graph provided, answer the following: Which curve represents the new market demand for cigarettes? With a $1.50 per-unit tax on cigarettes in place, how much of the tax is borne by consumers before and after the shift in demand? What is the change in total government tax revenue due to this demand shift?