In 2009, the Federal government passed legislation that more than doubled the taxes on cigarettes. USA Today
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In 2009, the Federal government passed legislation that more than doubled the taxes on cigarettes.
USA Today published this article
usatoday30.usatoday.com/money/perfi/taxes/2009-03-31-cigarettetax_N.htm
That included the estimated effect on consumption.
Given the statistics cited in the article, is the demand for cigarettes elastic or inelastic? Based on your answer how effective will it be in changing consumption? In your answer, use all of the determinants of elasticity (substitutes, necessity, budget, time). In raising tax revenue?.
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