Suppose that you have estimated that demand for cigarettes among adults is different from the demand for cigarettes among teenagers.The demand curves that you have estimated are shown below:
Suppose the current price for a pack of cigarettes is $3.00.A $1.00 per pack tax on cigarettes has been proposed.
The proposed tax will raise revenue

Question

Suppose that you have estimated that demand for cigarettes among adults is different from the demand for cigarettes among teenagers.The demand curves that you have estimated are shown below: 
Suppose the current price for a pack of cigarettes is $3.00.A $1.00 per pack tax on cigarettes has been proposed.
The proposed tax will raise revenue

Quizplus · Accepted Answer

According to the demand curves, the demand for cigarettes is more inelastic among adults than among teenagers. This means that adults are less likely to change their consumption behavior in response to a change in price compared to teenagers. Therefore, the proposed $1.00 per pack tax is likely to have a greater impact on the demand for cigarettes among teenagers than adults, and consequently, it will raise revenue to a greater extent from adults than from teenagers.

Suppose That You Have Estimated That Demand for Cigarettes Among