Have to answer to dissusion post but each should be a minium of 150 words. (ther

Have to answer to dissusion post but each should be a minium of 150 words. (theres no need for any citation but if you need to please contact me first)
Elasticity
1. The average price for a pack of cigarettes in the United States in 2010 is $5.32. On average the combined state and federal excise tax on cigarettes is $2.50, or about 50% of the price of a pack. Estimates of the price elasticity of demand for cigarettes suggest a price elasticityof around 0.45. How does knowledge of the price elasticity help you to understand how the imposition of excise taxes on cigarettes will affect the revenue earned by cigarette companies, the expenditures on cigarettes by smokers and the tax revenue received by the government?
Tax Incidence
2. The average price for a pack of cigarettes in the United States in 2010 is $5.32. On average the combined state and federal excise tax on cigarettes is $2.50, or about 50% of the price of a pack. Estimates of the price elasticity of demand for cigarettes suggest a price elasticity of around 0.45. How does knowledge of the price elasticity help you to understand how the imposition of excise taxes on cigarettes will affect the revenue earned by cigarette companies, the expenditures on cigarettes by smokers and the tax revenue received by government? Please relate your response to the impact of tax burden, who bears the burden, why? Given easticity, how do you determine the tax burden, is it shared by the smoker and the seller? Why the tax, and does it cause a deadweight loss? Explain
(although they are similar they are diffrent)

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