What should the excise tax be in order to raise


Problem

Suppose that the market for cigarettes in a particular town has the following supply and demand curves: QS P; QD 50 P, where the quantities are measured in thousands of units. Suppose that the town council needs to raise $300,000 in revenue and decides to do this by taxing the cigarette market. What should the excise tax be in order to raise the required amount of money?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: What should the excise tax be in order to raise
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