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

Based on the demand curves, it can be seen that the demand for cigarettes is more elastic (responsive to price changes) among teenagers than among adults. Since the tax will increase the price of cigarettes, the quantity demanded by teenagers will decrease more than the quantity demanded by adults. This means that the tax will generate more revenue from adults than from teenagers.

Suppose That You Have Estimated That Demand for Cigarettes Among