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You are given the following information

You are given the following information

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You are given the following information:

• Price elasticity of demand for cigarettes at currentprices is 0.5

.• Current price of cigarettes is $0.05 per cigarette.

• Cigarettes are being purchased at a rate of 10 millionper year.

Find a linear demand that fits this information, and graphthat demand curve.

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