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Y7 Specific Tax Incidence. Consider a perfectly competitive market in which the market demand curve is P(Q) = 171 - 0.7Q and the market supply

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Specific Tax Incidence. Consider a perfectly competitive market in which the market demand curve is P(Q) = 171 - 0.7Q and the market supply curve is P(Q) = 1.3Q. Suppose the government imposes a specific tax of $2.90 per unit. What percentage of this tax will be passed on to the consumers? O A. 45.00% O B. 35.00% O C. 20.00% O D. 55.00% O E. 30.00%

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