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The annual demand for cigarettes in a certain state is given QD 100,000 - 2,000 P where P is the price per gallon and Qp is packs of cigarettes demanded per year. The supply of cigarettes is given by the equation Qs 3,000 P Suppose that a 1 TL per pack tax is levied on the price of cigarettes received by sellers Calculate the efficiency loss. What portion of the tax is shifted on the consumers?
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