The demand for cigarettes is price inelastic, but not perfectly inelastic. The supply of cigarettes is elastic, but not perfectly elastic. If there were no price controls or other complicating regulations, what would a model of supply and demand therefore predict if a high cigarette tax were removed?

The price consumers pay would fall by the full amount of the tax.

The price consumers pay would fall by most of the amount of the tax.

The price consumers pay would be unchanged.

The price consumers pay would fall by less than half of the tax amount.