http://www.insideindianabusiness.com/newsitem.asp?id=23058.
Prices of a pack of cigs vary of course in IN, but let's make the reasonable assumption that a pack on average costs $3.60. Let's also assume elasticity of demand for cigs in inelastic (but not terribly so) is around -.3 (which is also reasonable given research). That means a 44 cent tax hike would reduce consumption of cigs by about 3.6% - not much, but better than nothing.
2 comments:
Now I've talked with Sam before, and he was real, unassuming, and very cordial
In the history of boasts about sexual bravado, that one doesn't rank so highly in the memorable quotes chapter.
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