Increasing the tax on cigarettes

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A MN legislator proposes that increasing the tax on cigarettes from $1 per pack to $2 per pack. Our legislator believes this tax increase is justified because of the health risks from cigarettes. Is this tax increase economically justified? Explain clearly the effects of the increase in the tax and be sure to discuss what impacts this has on efficiency in the market for cigarettes.

Reference no: EM131380376

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