Nov 112009

How does a cigarette tax affect the equilibrium price and quantity?

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It raises equilibrium price and reduces equilibrium quantity.

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Posted by Smokes at 9:37 pm Tagged with: , ,

2 Responses to “How does a cigarette tax affect the equilibrium price and quantity?”

  1. NC says:

    It raises equilibrium price and reduces equilibrium quantity.
    References :

  2. Ravii says:

    Decraes the quantity, due to the tax, comsumers spending more. The price will increase, due to less consumption.
    References :

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