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Assume that demand for cigarettes is quite inelastic. What does this mean in terms of the demand for cigarettes? If a tax is added to
Assume that demand for cigarettes is quite inelastic. What does this mean in terms of the demand for cigarettes? If a tax is added to cigarettes how will the quantity demanded change? If a tax is added to cigarettes, who will bear most of the burden? Meaning will the extra cost be passed on to the consumer?
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