Question 10

Profit margins on cigarettes for manufacturers, wholesalers, and retailers are so low at present that future reductions in the profit margins on a pack of cigarettes are out of the question.

This statement strengthens the argument by highlighting that if profit margins are already low, it becomes unlikely that manufacturers will absorb the tax increases without passing them on to consumers, thereby supporting the anticipated increase in cigarette prices.

A) In the past, when cigarette prices have dropped temporarily in Coponia, the sales of cigarettes have not always risen.

This option does not directly support the argument regarding the impact of a tax increase on future sales. It focuses on past sales behavior in response to price decreases rather than the effects of price increases due to tax hikes.

B) Profit margins on cigarettes for manufacturers, wholesalers, and retailers are so low at present that future reductions in the profit margins on a pack of cigarettes are out of the question.

This option directly strengthens the argument by indicating that manufacturers will likely pass on the tax increase to consumers, which supports the claim that the tax hike will lead to a decrease in cigarette sales.

C) Cigarette manufacturers in Coponia had expected the upcoming increase in the cigarette tax to be no more than 7 percent.

While this statement addresses manufacturers' expectations regarding the tax increase, it does not strengthen the argument about the relationship between price increases and sales decreases. It may even weaken the argument, suggesting that the anticipated tax hike may not be significant enough to affect sales.

D) At present, the price of a pack of cigarettes in Coponia includes taxes that amount to less than 10 percent of the total selling price.

This information does not support the argument since it does not provide insight into how the upcoming tax increase will affect sales. It merely states the current tax level without establishing a correlation with consumer behavior in response to price changes.

E) Some of the revenues from the tax increase will be used to compensate public health-care agencies for the expenses they incur in treating smoking-related illnesses.

While this option discusses the allocation of tax revenues, it does not strengthen the argument regarding how the tax increase will impact cigarette sales. It does not address consumer behavior or price elasticity in relation to the tax.

Conclusion

Option B is the most effective in strengthening the argument, as it clearly connects the low profit margins to the likelihood of price increases following the tax hike, reinforcing the claim that cigarette sales will decrease. The other options either fail to relate directly to the impact of the tax on sales or provide irrelevant information, thus not contributing to the argument's strength.