D Question 4 1 pts The government is deciding whether to impose a sales tax on cigarettes or a sales tax on luxury handbags. Which of the following arguments makes sense? O The government should impose a sales tax on cigarettes as the sales tax will only affect the cigarettes companies but not the cigarettes buyers. O The government should impose a sales tax on luxury handbags as the DWL generated will be small compared with the DWL generated from the sales tax on cigarettes. O The government should impose a sales tax on cigarettes as the demand for cigarettes is relatively inelastic and the DWL generated will be small. On the other hand, the DWL generated from the sales tax on luxury handbags is likely to be large. O The government should impose a sales tax on luxury handbags as the equilibrium quantity will decrease only slightly after the sales tax is imposed. On the other hand, the equilibrium quantity of cigarettes will decrease a lot after the sales tax is Imposed on cigarettes