The following diagram shows the supply and demand for cupcakes (with quantity measured in dozens). a. Suppose

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The following diagram shows the supply and demand for cupcakes (with quantity measured in dozens).

a. Suppose the government imposes a new sales tax of $6 per dozen cupcakes. What will the new price of cupcakes be?
b. Suppose the government imposes a new excise tax of $6 per dozen cupcakes. What will the new price of cupcakesbe?

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Price theory and applications

ISBN: 978-0538746458

8th edition

Authors: Steven E landsburg

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Question Posted: Feb 21, 2014 06:23 AM

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The following diagram shows the supply and demand for cupcakes (with quantity measured in dozens). a. Suppose

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Price theory and applications

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