P 3.5 3 2.5 2 1 0 100 200 D Q S1 S0
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- The initial equilibrium price is $3, where the original supply curve \( S_0 \) intersects the demand curve \( D \). - After the tax, the new supply curve \( S_1 \) intersects the demand curve at a price of $3.5. - The excise tax per packet is the difference Show more…
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