Which of the Following Statements Is TRUE Regarding Cigarettetaxes

question 64

Multiple Choice

Which of the following statements is TRUE regarding cigarettetaxes?

• A)Cigarette manufacturers bear almost all of the cigarette taxes.
• B)Cigarette manufacturers tend to ship their product from low- tax states to high-tax states.
• C)The elasticity of cigarette supply in all states is very small so cigarette manufacturers receive higher after-tax prices in
• Higher-tax states.
• D)After-tax prices received by cigarette manufacturers are about the same in all states.

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