Critical Reasoning (CR) | Re: In the past, every ten-percentage-point increase in cigarette prices

HiThatDudeKnows

If we negate A and assume that the sellers are actually wiling to reduce their profits. The amount of tax paid is 9 cents and that is constant. So 9 cents tax on a 90 cents item amounts to a 10% increase. Now if the tobacco company reduces the selling price, so as to reduce their profits, from 90 to suppose 85. The tax amount is still 9 cents. So in this case the new price would be 94 cents. From 85 to 94, that is an increase of approx. 10.5%. The increase in price
...

---