Calculate the dead-weight-loss due to the sales tax

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Reference no: EM13801127

Suppose the market for cigarettes is characterized by the following information :

Qd= 70-5P (demand)

Qs = 3P-10 (Supply)

Suppose the government impose a sales tax of $2 per unit. Calculate the Dead-Weight-Loss due to the sales tax.

(Note : P= Price per unit; Qd= thousands of units demanded; Qs = thousands of units Supplied)

Reference no: EM13801127

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