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In 2009 the federal excise tax on cigarettes was raised. In response, the CDC noted that "... because low-income groups are more responsive to price increases, increasing the real price of cigarettes can reduce cigarette consumption among low-income smokers by a greater percentage than among higher-income smokers, and thereby diminish socioeconomic smoking disparities."This quote by the CDC implies what economic outcome?

Respuesta :

Answer:

The increase in excise tax will work as a negative incentive for lower income groups who smoke, thus lowering the rate of smokers in this group.

Explanation:

Price raising of cigarettes is been considered to be for the lessen the usage of cigarettes and is been considered to be most effective step taken for this method.

The resulting increase in price may cut down the number of people using them at a very high rate. Case study gave the survey reports as 5 to 6% downfall of the rates of using cigarettes.

It is also seen that smoking is generally done by the most low income, working- class and the low education people.

The study shows that imposition of taxes had lead to a decrement of cigarettes using people. The increase in the excise taxes will work as a incentive of negative in nature for those of the groups belonging to lower income and hence lowering the rate of people using it in this group.

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