In order to reduce teen smoking, the government places a $2 per pack tax on cigarettes. After one month, the quantity demanded of cigarettes has been reduced only slightly. Discuss the following:

A.What conclusion can you draw about the one-month demand for cigarettes?

B.Caleb suggests that the cigarette industry should get together and raise the price of cigarettes further to increase total revenue .

C.Keisha suggests that only your firm should raise the price of your cigarettes to increase total revenue.