New York University ECON-SHU ECON-SHU UA 2 Use the following to answer the next 3 questions Graph below shows the demand for cigarillos (a tobacco product) each month. The price per box is…

New York University ECON-SHU ECON-SHU UA 2 Use the following to answer the next 3 questions Graph below shows the demand for cigarillos (a tobacco product) each month. The price per box is…

In either case (tax or floor) the price per box is higher. This increasing in price is an indicator/measure of inefficiency

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New York University ECON-SHU ECON-SHU UA 2 Use the following to answer the next 3 questions Graph below shows the demand for cigarillos (a tobacco product) each month. The price per box is…
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a. True b. False

If instead of a tax of $22 per box the government imposed a price floor of $80. The resulting inefficiency would be the same as the inefficiency caused by the tax

a. True b. False

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