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UnlockStep 3UnlockAnswerUnlock Transcribed image text: price elasticity of supply is about 0.50 Using this information, derive linear demand and supply curves for the cigarette market Let the demand curve be of the general form: Q=a-bP and the supply curve be of the general form: Q=C+dP, where Q is billions of packs of cigarettes and a, b, c, and d are constants

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Photograph:Fabrizio Bensch / Reuters A devastating audit of the tobacco industry has been published showing that despite nearly 50m deaths in the last century due to tobacco use, the industry is gaining bigger profits than ever before

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