McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 15

One common argument for imposing so-called sin taxes is the social goal of reducing demand for such products.Using cigarettes as an example, is there a segment of the population that might be sensitive to price and for whom high taxes might discourage purchases?