The reason cigarette taxes would impact kids more than adults is that adult demand is _____ elastic than demand by kids.

Question

Quizplus · Accepted Answer

The elasticity of demand for cigarettes refers to how responsive consumers are to a change in price. Generally, adult smokers have a more addictive relationship with cigarettes, making their demand for cigarettes less elastic than kids. This means that if cigarette taxes were increased, adults would be less likely to quit smoking or reduce their cigarette consumption compared to kids who may be more discouraged from taking up the habit or may be more likely to quit smoking. Therefore, cigarette taxes would impact kids more than adults.

The Reason Cigarette Taxes Would Impact Kids More Than Adults