In the country of Bunrose, the government has a monopoly on tobacco products. Thirty years ago, in response to a rise in tobacco-related illnesses, the government decided to limit its sale of tobacco products. Despite the loss in tobacco-related revenue, the government’s net revenue was no less this year than it was 30 years ago.
Which of the following, if true, best explains why the government’s net revenue did not decrease since it limited the sale of tobacco products?
A. In addition to limiting its sale of tobacco products, the government also ran advertisements highlighting the dangers of tobacco use.
B. Many members of the government’s legislature were in favor of the government’s decision to limit tobacco use.
C. Twenty years ago, most of the people using tobacco were aware of its health risks.
D. All health care in Bunrose is government-funded.
E. Consumers who saved money on tobacco products spent the majority of that money on private goods.