A. Tobacco companies are unlikely to reduce their profit per pack of cigarettes to
avoid an increase in the cost per pack to consumers in Coponia.
- correct (note also 9% increase is on existing taxes)
B. Previous increases in cigarette prices in Coponia have generally been due to
increases in taxes on cigarettes.
- previous increase is due to taxes or not is irrelevant to the argument.
C. Any decrease in per capita sales of cigarettes in Coponia will result mainly from
an increase in the number of people who quit smoking entirely.
- no that's not assumed. it's too strong a statement.
D. At present, the price of a pack of cigarettes in Coponia includes taxes that amount
to less than ten percent of the total selling price.
- even if they do, we don't know what impact a 9% percent increase in taxes would manifest into - i mean whether the impact would lead to a 10 % percentage point increase on selling price per pack or less. can't say.
E. The number of people in Coponia who smoke cigarettes has remained relatively
constant for the past several years.
- irrelevant. whether people have increased or remained relatively constant - the impact on sales is in percentage terms - 4% decrease. so number really isn't the game here.
_________________