Economy, asked by mehakjotkaur24, 8 months ago

how a habitutal smoker will react to price change

Answers

Answered by Anonymous

1

Explanation:

The value of the estimated cigarette price elasticity is smaller than one, meaning that the tax will not only reduce cigarette consumption but it will also generate additional tax revenues. Male smokers who had no income or who smoked light cigarettes were found to be more responsive to changes in cigarette price.

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