The BBC reports that Greece is to increase its taxes on alcohol and tobacco
http://news.bbc.co.uk/1/hi/business/8449252.stm
a) What type of taxes are these?
b) Draw a S&D diagram to show the effect of increasing the taxes
c) Given the government think that increasing the taxes will increase its revenues, what can you say about demand for these products?
d) Why is this the case?
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