Until recently, the elasticity of demand for cigarettes by adults was such that an increase in cigarette taxes to one dollar would

Question

Quizplus · Accepted Answer

Studies have shown that an increase in cigarette taxes to one dollar reduces adult smoking by around 10%. However, it should be noted that the elasticity of demand for cigarettes can vary based on factors such as income, age, and addiction level.

Until Recently, the Elasticity of Demand for Cigarettes by Adults