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Suppose that the local government of Corpus Christi decides to institute a tax on seltzer consumers. Before the tax, 10 billion packs of seltzer were
Suppose that the local government of Corpus Christi decides to institute a tax on seltzer consumers. Before the tax, 10 billion packs of seltzer were sold every year at a price of $9 per pack. After the tax, 3 billion packs of seltzer are sold every year; consumers pay $14 per pack (including the tax), and producers receive $6 per pack
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