Related to the Economics in Practice on page 108: Which of the following, if true, would most effectively undermine the argument that raising cigarette taxes reduces the number of people who smoke cigarettes?
A) The demand for cigarettes is relatively inelastic.
B) The demand for cigarettes is relatively elastic.
C) The supply for cigarettes is relatively inelastic.
D) The supply for cigarettes is relatively elastic.

Question

Quizplus · Accepted Answer

If the demand for cigarettes is relatively inelastic, it means that consumers' quantity demanded does not significantly decrease with an increase in price, suggesting that raising taxes may not effectively reduce the number of smokers.

Related to the Economics in Practice on Page 108: Which