Asked By: Kelsi Hahn
Date created: Thu, Oct 28, 2021 2:12 PM
Date updated: Mon, Jul 25, 2022 11:21 AM
Top best answers to the question «Tobacco tax example of what»
- The example of cigarette taxes showed that because demand is inelastic, taxes are not effective at reducing the equilibrium quantity of smoking, and they are mainly passed along to consumers in the form of higher prices. The analysis, or manner, of how the burden of a tax is divided between consumers and producers is called tax incidence.