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Tanuj rana Asked a Question
September 10, 2020 11:13 ampts 5 pts
In country X, cigarettes are forbidden, so people trade cigarettes in a black market. The cigarette demand is Qp 12- P and the cigarette supply is Qs 2P. The government becomes aware of the black market and reinforces the police so that half of the cigarette supply would be seized and destroyed. How does the consumer surplus change between the two situations? . (a) Remains the same (b) Decreases by 10 Decrea se s by 14 d) None of the above
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  • Nidhi taparia thankyou
    Option c is right. Please refer to the image.
    • cropped7482895115482217610.jpg
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