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The government imposes a specific tax of $ 2.70 per cigarette. The price elasticity of supply is 3.0 and the price elasticity of demand is
The government imposes a specific tax of $ 2.70 per cigarette. The price elasticity of supply is 3.0 and the price elasticity of demand is -0.6. how much tax would the producer bear ?
a. $ 0.45 b. $ 0.60 c. $ 0.75 d. $ 0.90
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