2.5 Novigrad city has elected a mayor who wishes to enact a new health initiative. She imposes...

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2.5 Novigrad city has elected a mayor who wishes to enact a new health initiative. She imposes a 10 percent tax on cigarettes to deter people from smoking. After one year, tax revenues from cigarettes increase by 5 percent. Does this mean that the tax increase did not discourage smoking? Explain.

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Principles Of Microeconomics

ISBN: 9780691150093

13th Global Edition

Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster

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