11. New York raises the price of a pack of cigarettes from $10.50 to $13, adding additional...

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11. New York raises the price of a pack of cigarettes from $10.50 to $13, adding additional pressure on what is already the costliest cigarette market in the country. However, the sales of bootleg cigarettes from other states allow smokers in New York to bypass taxes and buy cigarettes for a price of $7 or $8 per pack. Does this mean that the black market is flourishing in New York? Explain your arguments.

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Microeconomics

ISBN: 9781292214351

2nd Global Edition

Authors: Daron Acemoglu, David Laibson, John List

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