Why would a government tax on cigarettes be an ineffective method to decrease consumption of cigarettes if demand for cigarettes is inelastic?

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1140381

2026-03-20 10:35

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Because cigarettes are a inelastic item, and when something is inelastic, people are going to buy it no matter if the price changes or not.

Inelastic= necessity item

Necessity item= people will always buy even when the price increases

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