The elasticities of the supply and demand curves in the market for cigarettes affect how much a tax distorts that market.

Name: The elasticities of the supply and demand curves in the market for cigarettes affect how much a tax distorts that market.
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Question

Quizplus · Accepted Answer

The elasticities of supply and demand curves determine how much of the tax is absorbed by consumers versus producers and affect the overall market distortion, including changes in quantities sold and economic welfare.

The Elasticities of the Supply and Demand Curves in the Market