10.10. Suppose that the market for cigarettes in a particular town has the following supply and demand...
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10.10. Suppose that the market for cigarettes in a particular town has the following supply and demand curves:
QS " P; QD " 50 ! P, where the quantities are measured in thousands of units. Suppose that the town council needs to raise $300,000 in revenue and decides to do this by taxing the cigarette market. What should the excise tax be in order to raise the required amount of money?
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