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Suppose the government has raised by $10 a per carat tax rate it imposes on diamonds in an effortto influence production of this particular good

Suppose the government has raised by $10 a per carat tax rate it imposes on diamonds in an effortto influence production of this particular good by

each of the firms that produce it and purchases byindividual consumers. Would we apply microeconomicor macroeconomic analysis to analyze

this policy action? EXPLAIN YOUR ANSWER.

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