The government is considering placing a tax on cigarettes to raise revenue to finance health-care benefits. The demand for cigarettes is price inelastic Which of the following statements is True ?

• A. This tax will not raise much revenue either in the short term or the long term since demand is price inelastic
• B. The tax on cigarettes may not raise as much revenue as anticipated in the years to com because the demand for cigarettes is likely to become more elas
• C. This a very good way to raise revenue both in the short term and in the long term, because there are no substitutes for cigarettes.
• D. No tax revenue can be raised in this way because sellers of cigarette will just lower their price by the amount of the tax and therefore, the price of