Cigarette Taxes Have Had the Effect of Eliminating the Wedge

question 13

True/False

Cigarette taxes have had the effect of eliminating the wedge between the demand price for cigarettes and the supply price of cigarettes.

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Definitions:

Sensation

The process by which sensory receptors and the nervous system receive and represent stimulus energies from the environment.

Minimal Stimulus

The smallest level of stimulation that can be detected or that elicits a response from an organism.

Absolute Threshold

The minimum intensity of a stimulus that one can detect 50% of the time, delineating the boundary between detectable and undetectable sensations.

Difference Threshold

The minimal change in stimulation that an individual can detect 50% of the time, also known as the just noticeable difference (JND).