Advanced Placement (AP), 18.10.2019 18:10, kkelley3141

In 2009 the federal excise tax on cigarettes was raised. in response, the cdc noted that " because low-income groups are more responsive to price increases, increasing the real price of cigarettes can reduce cigarette consumption among low-income smokers by a greater percentage than among higher-income smokers, and thereby diminish socioeconomic smoking disparities." this quote by the cdc implies what economic outcome? a) the increase in the excise tax will have a greater impact on higher income smokers. b) the decrease in the federal excise tax on cigarettes will have a net impact of increasing the tax revenue for states. c) the increase in excise tax will work as a positive incentive towards bringing in greater tax revenue from cigarette purchases. d) the increase in excise tax will work as a negative incentive for lower income groups who smoke, thus lowering the rate of smokers in this group.

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In 2009 the federal excise tax on cigarettes was raised. in response, the cdc noted that " because l...