New York levies the highest cigarette tax in the country$5.85 per pack. Other states in the United

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New York levies the highest cigarette tax in the country—$5.85 per pack. Other states in the United States impose taxes that are much lower. The state of Virginia levies a tax of 30 cents per pack, which is the second lowest after Missouri. How would this explain the thriving black market for cigarettes in New York?
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Microeconomics

ISBN: 978-1292079578

Global Edition 1st Edition

Authors: David Laibson, John List

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