The US Imposes Substantial Taxes on Cigarettes but Not on Loose

question 61

Multiple Choice

The U.S. imposes substantial taxes on cigarettes but not on loose tobacco. When the tax on cigarettes went into effect, the demand for home cigarette rolling machines most likely:

• A) decreased, causing the price of cigarette rolling machines to fall and the quantity of machines purchased to fall.
• B) decreased, causing the price of cigarette rolling machines to rise and the quantity of machines purchased to fall.
• C) increased, causing the price of cigarette rolling machines to rise and the quantity of machines purchased to rise.
• D) increased, causing the price of cigarette rolling machines to rise and the quantity of machines purchased to fall.

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Definitions:

Eldest Son

The firstborn male child in a family, often subject to specific rights, responsibilities, or inheritances in various cultures.

Inheritance

The practice of passing on property, titles, debts, rights, and obligations upon the death of an individual.

Castilian Monarchy

Refers to the monarchy of Castile, a significant kingdom in the Iberian Peninsula that played a central role in the unification of Spain and the Spanish Empire.

Cortes

A term that historically refers to the representative assemblies or parliaments in Spain and Portugal or their colonial territories.