Suppose the government decides to enact a new tax on electronic cigarettes. What will happen in the market for electronic cigarettes? (Note: Neither the supply curve nor the demand curve for electronic cigarettes is perfectly inelastic.) Choose one or more: A. The tax on electronic cigarettes will cause a deadweight loss. B. The price consumers pay for electronic cigarettes will be higher. C. The price producers receive for electronic cigarettes will be higher. D. The quantity of electronic cigarettes sold will decrease.

A, B, C, and D

Explanation:

Since electronic cigarette is not inelastic, a tax increase on it will result in an increase in the price of electronic cigarettes which will bring about a decrease in the quantity sold. Producers will include the tax in the product thus increasing the price they receive for electronic cigarettes thus forcing consumers to pay a higher price. There will be a dead weight loss on the side of the consumer as they will have to pay for the increased tax

answer; the correct answer to the above statement is (true);

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.