demand for cigarettes elastic or inelastic The is highly inelastic. This suggests that the incidence of a higher tax on cigarettes will fall primarily on ✓ Tax incidence Tax incidence
Tax incidence Tax incidence refers to the way the burden of a tax is divided between consumers and producers, determined by the relative elasticities of demand and supply rather than by Principles of Macroeconomics 2e, Elasticity, Elasticity and Pricing OERTX Table 3 from Price Elasticity Estimates for Cigarette Demand in Vietnam Semantic Scholar Demand & Supply Curves with an Excise Tab (Example, Texarkana Cigarettes Intro to Microeconomics) Price Elasticity of Demand An Economist's Perspective
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