In the past , every ten-percentage-point increase in cigarette prices in the country of Coponia has decreased per capita sales of cigarettes by four percent. Coponia is about to raise taxes on cigarettes by 9 cents per pack. The average price of cigarette in Coponuia is and has been for more than a year 90 per pack. So the tax hike stands an excellent chance of reducing per capita sales of cigarettes by four percent.
A: Tobacco companies are unlikely to reduce their profit per pack of cigarettes to avoid an increase in the costper pack to consumers in Coponia
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