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Suppose the Pre-Tax Price of Cigarettes Is $3 Per Pack

Question 19

Multiple Choice

Suppose the pre-tax price of cigarettes is $3 per pack and the post-tax price is $4 per pack.The tax is $1.50 per pack and is paid by the retailers of cigarettes to the government.Prior to the tax,600 packs were sold; after the tax 500 packs were sold.What is the consumer tax burden?


A) $1
B) $1.50
C) $2.50
D) $3

Correct Answer:

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