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Use the graph for a competitive market ti answer the question below

Use the graph for a competitive market ti answer the question below-example-1
asked
User ZeroNine
by
8.3k points

1 Answer

5 votes

Answer:

$3.25

Step-by-step explanation:

The new price for cigarettes will be the intersection point between the demand curves and the new supply curve.

Assuming S1 is the old supply curve without taxes and the new supply curve is S2 with taxes. The new price is the intersection of S2 and the demand curve, which is at $3.25.

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User Naltroc
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8.2k points

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