uses price elasticity to focus on cigarette taxes' intended outcomes: reducing tobacco consumption and increasing government tax revenues. Before responding to the question, watch the video below to brush up on elasticity. https://youtu.be/Gw5J1fH22eo

Sometimes governments tax certain types of consumption to reduce the quantity demanded and raise revenue. Concerning price elasticity, these two goals are often at odds with each other - a tax on a good with inelastic demand will raise revenue but not affect consumption. Many people find taxing goods such as alcohol and tobacco morally wrong because both products tend to be addictive, and taking advantage of such a consumer is unconscionable. In contrast, a tax on a good with elastic demand will not raise much revenue but will affect consumption.

Organizations such as Tobacconomics, Campaign for Tobacco-Free Kids, and the Cancer Action Network of the American Cancer Society claim that tobacco taxes reduce the incidence of smoking and provide a source of additional tax revenues. Research the impact of tobacco taxes on tobacco consumption and tax revenues. Based on your research: How influential are tobacco taxes in changing tobacco consumption? In raising revenue? Is demand for tobacco products price elastic or price inelastic? Finally, does the information you found support the position of these organizations? As you report on and reflect on what you found, use the determinants of elasticity (substitutes, necessity, budget, time). Depending on the information you find, explore other related topics (effects of cigarette taxes on individual behavior over time, non-economic influences on individual behavior, regional differences, differences in how adults and youth respond to an increase in taxes or anything else that you will find interesting).