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According to the ATO (2022), the tobacco excise (tax) is 1.14040 per cigarette or cigar weighing less than 0.8g. Assuming there are no externalities from

According to the ATO (2022), the tobacco excise (tax) is 1.14040 per cigarette or cigar weighing less than 0.8g. Assuming there are no externalities from tobacco, discuss the implications on the equilibrium price, sales and deadweight loss if there was an increase in the tobacco tax. Emphasize the relative elasticity of demand and supply.

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