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Suppose the government imposes a $5 tax on each pack of cigarettes. Because the demand for cigarettes is likely to be _______________, we expect the
Suppose the government imposes a $5 tax on each pack of cigarettes. Because the demand for cigarettes is likely to be _______________, we expect the drop in equilibrium quantity to be __________, and the deadweight loss created to be _____________.
(a) elastic; large; small
(b) inelastic; small; small
(c) elastic; large; large
(d) inelastic; small; large
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