Shоrt аnswer. In 2023, Cоuntry K (а hypоtheticаl country) cut the corporate income tax rate from 25% to 10% for manufacturing firms located in six designated provinces. Manufacturing firms in all other provinces continued to pay 25%. The table shows average investment per manufacturing firm (in millions of local currency). 2021 2022 2024 Firms in the six designated provinces 40 44 52 Firms in all other provinces 60 64 66 Analyst 1 estimates the effect of the tax cut as 52 − 66 = −14 and concludes that the tax cut reduced investment. Analyst 2 estimates the effect as 52 − 44 = +8 and concludes that tax cut increased investment. For each analyst, explain the problem with the approach. For one of the analysts, also give a specific example of a factor that would make that estimate misleading. Explain in the text box.