Answer to Question #47805 in Microeconomics for Yoyo

Question #47805
Taxes on cigarettes are perfect; they reduce smoking dramatically and raise a lot of tax revenue (tax per unit times units sold after-tax).
1
Expert's answer
2014-10-15T14:21:01-0400
Taxes on cigarettes can increase final price on cigarettes and decrease quantity demanded. Quantity demanded will decrease lower than price increased and in total tax revenue would increase.

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