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Suppose that. the government is raising money for nding lung cancer research by taxing cigarettes If they raised the same amount. by having a tax

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Suppose that. the government is raising money for nding lung cancer research by taxing cigarettes If they raised the same amount. by having a tax on income would individuals be better off or worse off? Illustrate your result by supposing that all individuals in this society share the same preferences as Mr. 1" ice, who consumes only cigarettes and alcohol, and whose preferences are represented by the utility function HUS\

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