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.
+2
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “In 2009 the federal excise tax on cigarettes was raised. In response, the CDC noted that " ... because low-income groups are more ...” in 📗 Advanced Placement (AP) if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Home » Advanced Placement (AP) » 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