If the government imposes a per-cigarette tax on smoking, which of the following is most likely to occur?
A) Cigarettes would get bigger and/or more potent as a way of avoiding part of the tax.
B) The price of cigarettes would fall.
C) The quantity of cigarettes sold would rise.
D) The government would raise little revenue because demand for cigarettes is highly elastic.
Correct Answer:
Verified
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