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Business, 31.01.2020 23:48 didirose

Suppose there is a bill to increase the tax on cigarettes by $1 per pack coupled with an income tax cut of $500. suppose a person smokes an average of 500 packs of cigarettes per year—and would thus face a tax increase of about $500 per year from the cigarette tax at the person’s current level of consumption. the income tax measure would increase the person’s after-tax income by $500. would the combined measures be likely to have any effect on the person’s consumption of cigarettes? why or why not?

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