Taxes and Cigarettes: Scramble to Buy Before Tax Kicks In
Answer the following questions and submit your answers in google class:
1. Using a diagram, explain the effect on various stakeholders of this tax assuming that demand is relatively inelastic. Be sure to use specific values wherever possible.
2. Using a diagram, explain the desired market effect of the planned negative advertising campaigns.
3. Evaluate the effectiveness of government excise taxes on cigarettes.
1. Using a diagram, explain the effect on various stakeholders of this tax assuming that demand is relatively inelastic. Be sure to use specific values wherever possible.
2. Using a diagram, explain the desired market effect of the planned negative advertising campaigns.
3. Evaluate the effectiveness of government excise taxes on cigarettes.