Suppose the market demand for cigarettes is: D=10- P, and the supply of cigarettes is: S=- 2+P, where P is the price per pack of cigarettes. If the government imposes a cigarette tax of $1 per pack, the consumers' tax burden is:
A) $0.75.
B) $1.75.
C) $0.
D) $0.5.
Correct Answer:
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