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A country that does not currently tax cigarettes is considering the introduction of a $0.40 per pack tax. The economic advisors to the country estimate the supply as well as demand as well as curves for cigarettes as:
Qd = 140,000-25,000PQs = 20,000+75,000Pwhere Q= daily sales in packs of cigarettes as well as P = cost per pack. The country has hired you to provide the following information regarding the cigarette market as well as the proposed tax:
a) What are the equilibrium cost as well as quantity with no tax?
b) What cost as well as quantity would prevail after the imposition of the tax? Illustrate the portion of tax which would be borne by buyers as well as sellers, respectively?
c) Calculate the deadweight loss from the tax. Illustrate that the tax be acceptable in spite of the deadweight loss? What tax revenue will be generated?
Illustrate what strategies would you recommend in the fight against obesity. Elucidate what is GMA doing in the fight against obesity.
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Every may either 'cooperate' with its rival or 'cheat' in every period of play. If both cooperate, they earn $100 every in that period.
Explain why this phenomenon may be a good thing, using the laws of supply and demand to explain your answer.
The control function of the federal reserve system is divided into quantitative controls and qualitative controls. What is meant by the term "qualitative"?
Assume the government implements MC pricing regulation. Illustrate the effects of this approach on the diagram, clearly Demonstrate price charged, quantity produced, profits, deadweight loss.
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