Related to the Economics in Practice on Page 108: Which

Multiple Choice

Related to the Economics in Practice on page 108: Which of the following, if true, would support the argument for raising cigarette taxes even if the price of cigarettes has relatively little impact on adults' cigarette consumption?

A) The health risks of cigarette smoking are affected by the amount of nicotine in cigarettes as well as the number of cigarettes smoked.
B) When cigarette taxes vary between neighboring states, people have an incentive to buy cigarettes in the state with lower taxes.
C) Illness due to smoking is a significant cause of lost economic productivity.
D) The demand for cigarettes is more elastic for underage smokers as compared to that of adult smokers.