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Consider figure 11.4 in CSS. When the Minister of Finance increases the tax on cigarettes sold by retailers, which of the following statements is/are correct?
Consider figure 11.4 in CSS. When the Minister of Finance increases the tax on cigarettes sold by retailers, which of the following statements is/are correct? Select one or more: a. The demand curve pivots from D0 to D1. b. If the demand for cigarettes is inelastic, the total tax burden is equal to the area P1CDP0. c. The total tax burden of retailers increases proportionally as demand becomes more elastic. d. The total tax revenue of government is proportionally greater when demand is inelastic
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