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Therefore, the government tax on each pack of cigarettes is $2.50 - $1.50 = $1.00. b. The portion of the unit tax paid by consumers
Therefore, the government tax on each pack of cigarettes is $2.50 - $1.50 = $1.00. b. The portion of the unit tax paid by consumers can be determined by looking at the vertical distance between the demand curve and the price paid by consumers. In this case, the vertical distance is $1.00, which means that consumers pay the full amount of the unit tax
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