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hello in this video weve got a practice problem with an excise tax an excise tax is a per unit tax uh all across the united states many states charge a per unit or excise tax on a pack of cigarettes or i live in arizona its two dollars in this particular problem its 125. so what that does is it increases the price that the buyers will have to pay it doesnt change the price that the sellers get to keep because whatever that excise tax is is collected by the government okay so in this particular market equilibrium price and equilibrium quantity were going to go were going to take a look where is quantity demanded which is the amount uh that they want to buy equal to the amount that they want to sell so whenever weve got higher quantity demanded than higher quantity supplied weve got a shortage and then down here higher quantity supplied then quantity demanded weve got a surplus so where those values are equal is right here so its 240 and 240 so that would be four four dollars