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QUESTION
Suppose that the (inverse) market demand curve for a new drug, AdiposeOff, designed to painlessly reduce body fat, is represented by the equation...
Given the attached, how would the value of the index change if an excise tax of $5 per dose was imposed on the monopolist? Also, how would the value of the index change if instead of a tax of $5 per dose the government offers a subsidy of $5 per unit. "
