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An estimated 80% increase in the retail price of cigarettes is neccessary to cause a 30% drop in the number of cigarettes sold. Would such

An estimated 80% increase in the retail price of cigarettes is neccessary to cause a 30% drop in the number of cigarettes sold. Would such a price increase help or hurt the tobacco industry's profit? What would be the likely effect on industry profits if this price boost was simply caused by a $1.50 per pack increase in cugarette excise taxes

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