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Consider the demand for cigarettes. Suppose the government decreases the price of cigarettes by lowering cigarette taxes. How will this affect the demand for cigarettes over​ time? If the price of cigarettes decreases​, then the quantity of cigarettes demanded will

Respuesta :

Answer:

Demand for cigarette will increase.

Explanation:

According to demand theory, price of a good and its demand has an inverse relation. Hence if price of cigarette will decrease then its demand is expected to rise.

since reduction in tax will lead to lowering of cigarette price thereby inducing greater demand for it.

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