If the demand for cigarettes is more ________ for underage smokers as compared to that of adult smokers, then compared to adults, a tax on cigarettes would have ________ impact on the demand for cigarettes for teenagers.
A) elastic; more
B) elastic; less
C) inelastic; more
D) inelastic; an equal

Question

Quizplus · Accepted Answer

If the demand for cigarettes is more elastic for underage smokers, it means their demand is more sensitive to price changes. Therefore, a tax increase (which raises prices) would have a more significant impact on reducing demand among teenagers compared to adults, whose demand might be less elastic.

If the Demand for Cigarettes Is More ________ for Underage