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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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