Question: The demand for cigarettes, which create negative externalities through secondhand smoke, is often relatively inelastic. That is, when the price of cigarettes changes, the quantity

The demand for cigarettes, which create negative externalities through secondhand smoke, is often relatively inelastic. That is, when the price of cigarettes changes, the quantity demanded changes by a smaller portion. Using this fact, explain to what extent you think a tax on cigarettes would fulfill each of the goals of taxation.

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