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Suppose that the supply of insulin (drug to treat diabetes) is perfectly elastic and the demand for insulin is perfectly inelastic. A) Show graphically the

Suppose that the supply of insulin (drug to treat diabetes) is perfectly elastic and the demand for insulin is perfectly inelastic.

A) Show graphically the equilibrium price and quantity for insulin.

B) Show graphically the impact on the market for insulin if an excise tax (per unit tax) is imposed on insulin suppliers.

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