Cigarette taxes have had the effect of eliminating the wedge between the demand price for cigarettes and the supply price of cigarettes.

Name: Cigarette taxes have had the effect of eliminating the wedge between the demand price for cigarettes and the supply price of cigarettes.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Cigarette taxes create a wedge between the demand price (what consumers pay) and the supply price (what producers receive) by increasing the overall cost to consumers while reducing the effective price received by producers.

Cigarette Taxes Have Had the Effect of Eliminating the Wedge