Suppose the price elasticity of demand for cigarettes is -0.45 and that Malaysians purchase about 18 billion cigarettes

[answerhappygod]

Suppose the price elasticity of demand for cigarettes is -0.45 and that Malaysians purchase about 18 billion cigarettes a year.
(a) If the tax on cigarettes were increased enough to raise the price of cigarettes by 40%, what would be the effect on the quantity of cigarettes demanded?
(b) Is raising the tax on cigarettes a more effective way to reduce smoking if the demand for cigarettes is elastic or if it is inelastic? Explain with the use of supply and demand analysis.
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