We would expect that a tax on cigarettes will be more effective at discouraging consumption over the _______ because demand becomes _______ elastic over time.

Question

Quizplus · Accepted Answer

Over time, consumers have more opportunity to adjust to the tax on cigarettes (by quitting or reducing consumption), making the demand for cigarettes more elastic in the long run. This means that a tax on cigarettes will be more effective at discouraging consumption over the long run because consumers will be more responsive to changes in price.

We Would Expect That a Tax on Cigarettes Will Be