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:

Major Depressive Disorder

Major Depressive Disorder is a mental health disorder characterized by a pervasive and persistent feeling of sadness or lack of interest, affecting daily functioning.

Vegetative Signs

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