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Old 03-12-2009, 09:18 AM   #2
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Join Date: Apr 2007
Location: coming in from the cold
Posts: 586
Default Re: Cigarette/sin taxes

Studies show demand for cigarettes is generally inelastic, tax revenues increase as a response to higher duties, even with a corresponding reduction in quantity demanded. Or, to illustrate diagramatically:

So as you can see, it's plain as day
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