1. Illustrate a situation where the consumer price increases by exactly the amount of a specific excise tax paid by the producer by using a graph of supply and demand under perfect competition.
2. Bielinska-Kwapisz (2002) and Young * showed that alcohol sales exhibit a feature where the consumer price increases by more than the value of the tax paid by the producer. They call this an "over-shifted" result. Determine the key difference among their model and the one used in class that allows them to find this result.