Taxes to reduce teenage smoking? Many researchers believe the falling price of cigarettes during the mid-1990s caused an increase in teenage smoking, whereas price hikes during the late 1990s led to a reduction in teenage smoking. Many economists believe the impact of rising and falling prices depends on the price elasticity of demand for cigarettes by teenagers. Question: Should taxes be used to raise the price of cigarettes as a way to reduce teenage smoking? Identify the pros and cons of your answer.