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(b) The price of beer in Germany is about half what it is in Sweden, and they have no (or a very low) specific tax

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(b) The price of beer in Germany is about half what it is in Sweden, and they have no (or a very low) specific tax on beer. Let's assume that the price of german beer is the perfectly elastic) supply price without taxes. Since the price that consumers pay in Sweden is twice that price, the specific tax-rate is 100% (or t = 1). Find the quantity demanded in Sweden with a 100% tax on beer, without any refund of taxes. Also find the consumer's utility. (b) The price of beer in Germany is about half what it is in Sweden, and they have no (or a very low) specific tax on beer. Let's assume that the price of german beer is the perfectly elastic) supply price without taxes. Since the price that consumers pay in Sweden is twice that price, the specific tax-rate is 100% (or t = 1). Find the quantity demanded in Sweden with a 100% tax on beer, without any refund of taxes. Also find the consumer's utility

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