The demand for cigarettes is highly inelastic. This suggests that the incidence of a higher tax on cigarettes will fall primarily on

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06-07-2021
Business

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The demand for cigarettes is highly inelastic. This suggests that the incidence of a higher tax on cigarettes will fall primarily on

Sagot :

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Ayfat23idn Ayfat23idn · Answer 1 · 2021-07-08T20:21:48-04:00

Answer:

cigarette consumers.

Explanation:

Inelastic demand can be explained as a demand whereby the demand by buyers for a particular product ha little change compare to the change in price. Let say Athere is an increase in price by 20% , then demand for that product only experience decreases by only 1%, then we can say that demand is inelastic. For instance, when The demand for cigarettes is highly inelastic. This suggests that the incidence of a higher tax on cigarettes will fall primarily on cigarette consumers.

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