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Suppose that the price elasticity of demand for cigarettes is -0.2 and the price elasticity of supply is 0.5. The current price for a pack of cigarettes is 2 Dollars, and 500 billion packs of cigarettes are consumed annually. (a) Determine the linear demand and supply curves for cigarettes. (b) The government wants to reduce the consumption of cigarettes by imposing a tax of 2 Dollars per pack. Let P* be the new equilibrium price. Then, as a consequence of the tax, the buyer pays P*+2 Dollars for each pack of cigarettes. The seller still receives P* Dollars per pack, and the supply curve therefore does not change. Determine i? The equilibrium price P* (il) By how much does the tax reduce cigarette consumption. ?ii? The government's revenue from the cigarette tax.