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Please may I have answer and explanation to the question below: Over the past 30 years, cigarette makers did not worry too much about rising
Please may I have answer and explanation to the question below:
Over the past 30 years, cigarette makers did not worry too much about rising excise taxes on their product because they could simply raise prices to generate the extra revenue needed to pay the higher taxes. Apparently, according to recent stories in the Wall Street Journal, this pricing tactic no longer works. Explain why continued increases in the price of cigarettes eventually becomes an ineffective means of raising revenues.
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