Which of the following, if true, would most effectively undermine the argument that raising cigarette taxes reduces the number of people who smoke cigarettes?
A. The demand for cigarettes is relatively elastic.
B. The demand for cigarettes is relatively inelastic.
C. The supply for cigarettes is relatively elastic.
D. The supply for cigarettes is relatively inelastic.
Answer: B
You might also like to view...
To maintain a fixed exchange rate, authorities
A) make laws stipulating the exchange rate. B) modify money supply. C) modify government expenses. D) modify taxes.
The panic of 1893 was caused by the Sherman Silver Act of 1890, which doubled the Treasury's monthly purchase rates to 4
5 million ounces of silver at current market prices and was eased when President Cleveland called for the Act's repeal on June 30, 1893. Indicate whether the statement is true or false
Refer to Scenario 10.4. Given the information above, what are the profit maximizing number of tickets sold and the price of tickets?
A) 0, $60 B) 20,000, $50 C) 40,000, $40 D) 60,000, $30 E) 80,000, $20
The money multiplier is much lower today than it was twenty-five years ago because:
A. people are holding less currency today. B. credit cards are more widely used. C. there is less currency available today. D. the currency-to-deposit ratio is much higher today.