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Elasticity and Tax Incidence Elasticity and Tax Incidence 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

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Food and Drug Administration, carry as part of their mission to support public health, including adequate and truthful information about the relative risks and benefits of products

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Consumer Demand The pack size of the cigarette depends on the consumer demand and their smoking addictions