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8. Suppose the market demand and supply for packs of cigarettes are given by the following equations: Qd =200 20p Q5=201J Suppose the government imposes

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8. Suppose the market demand and supply for packs of cigarettes are given by the following equations: Qd =200 20p Q5=201J Suppose the government imposes a $2 excise tax on packs of cigarettes: - Solve pre-tax and post-tax equilibrium price and quantities - Solve for the efciency loss of the tax (solve for the pre-tax and post-tax consumer and producer surplus) - Solve for the economic incidence of the tax. Who bears that higher incidence

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