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If the United States Removed All Excise Taxes on Cigarettes

Question 67

Essay

If the United States removed all excise taxes on cigarettes, which of the following would not
occur?
A.Producer surplus for U.S.cigarette producers would decrease.
B.Producer surplus for U.S.cigarettes would increase.
C.Consumer surplus for U.S.cigarette consumers would increase.
D.Total surplus in the U.S.cigarette market would increase.

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