If the demand for cigarettes is inelastic, a per-unit tax on cigarettes will cause the quantity demanded to:

A. rise proportionally more than the increase in price caused by the tax.
B. fall proportionally more than the increase in price caused by the tax.
C. fall proportionally less than the increase in price caused by the tax.
D. rise proportionally less than the increase in price caused by the tax.


Answer: C

Economics

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