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Suppose the government is thinking of imposing a sales tax on a particular brand of cigarette. What will be the likely impact of this tax
Suppose the government is thinking of imposing a sales tax on a particular brand of cigarette. What will be the likely impact of this tax on the price of that cigarette brand and who will bear the major burden of the tax? How will your answer change if the tax was imposed on a particular brand of coffee instead? Explain with the help of appropriate diagrams.
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