A tax on cigarette production

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Reference no: EM13685016

A tax on cigarette production….

1. Will only reduce cigarette consumption if the demand for cigarettes is elastic.

2. Will reduce the quantity of cigarettes supplied but not the quantity demanded.

3. Will only reduce cigarette consumption if the demand for cigarettes is inelastic.

4. Will reduce cigarette consumption more if demand is elastic than if demand is inelastic.

Reference no: EM13685016

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