If the Government Increases the Excise Tax on Cigarettes by 10%,which

question 164

Multiple Choice

If the government increases the excise tax on cigarettes by 10%,which of the following statements is correct?

• A)The government's tax revenue will fall since the demand for cigarettes is inelastic.
• B)The quantity demanded of cigarettes will fall by more than 10% because the demand is inelastic.
• C)Both the quantity demanded and supplied of cigarettes will fall by more than 10% because the demand is inelastic.
• D)Since the demand for cigarettes is highly inelastic,the subsequent increase in price will be greater than the decrease in quantity demanded.

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Definitions:

Refreezing

The final stage of Lewin's change model where newly adopted behaviors, values, or attitudes are solidified into the organization or individual's practices, ensuring the change is sustained over time.

Change Process

The sequence of steps or actions involved in moving an organization or individual from its current state to a desired future state.

Sustainability

The ability to maintain or improve certain processes or states indefinitely without depleting resources or causing harmful impacts.

Definition

A precise explanation of the meaning of a word or phrase.