In many countries, health authorities are worried about the harmful effects of smoking cigarettes. Governments have set high sales taxes on cigarettes and have run anti-smoking campaigns. Why could the quantity of cigarettes demanded still remain high?
- ABetter knowledge of health hazards is changing behaviour.
- BCigarette smoking will be replaced by cheaper alternatives.
- CConsumer behaviour is irrational due to addiction.
- DThe income effect of a price rise makes consumers worse off.