Suppose the Market Demand for Cigarettes Is: D=10- P, and the Supply

Multiple Choice

Suppose the market demand for cigarettes is: D=10- P, and the supply of cigarettes is: S=- 2+P, where P is the price per pack of cigarettes. If the government imposes a cigarette tax of $1 per pack, the price paid by consumers is larger than the price faced by suppliers.

A) $6.5.
B) $5.
C) $1.
D) $6.